Placing

Definition:

The sale of new or existing shares to a specific group of investors, all of whom will usually be Institutional Investors. Because of this, no prospectus is usually required. In order to issue new shares, Pre-Emption Rights must be disapplied (because the shares will not be offered to all of the company’s shareholders in proportion to their existing holdings).

Institutional Investors in companies listed on the Main Market require that no more than 5% of the company’s issued share capital be issued for cash on a non-pre-emptive basis in any one-year period or more than 7.5% of the company’s issued share capital be issued for cash on a non-pre-emptive basis in any rolling three-year period.

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