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Corporate Actions


We are experienced in the provision of uniform practice and quality service for all corporate actions that may have a direct financial impact on an issuer company's shareholders or bondholders. These services include: rights issues, bonus issues, dividends and other payments.

 


 

Bonus Issue

Additional shares issued by the company to existing shareholders for free, usually in a pre-determined ratio to the number of shares already held.


Dividend

A dividend is a distribution of part of a company's net profit to securityholders, usually expressed as a number of cents per share.


Dividend Reinvestment Plan (DRP)

This is an alternative to cash dividends, allowing shareholders to receive new shares instead of cash. These shares are often issued at a discount and no brokerage is paid.


Distribution in Specie

A payment made to investors in the form of stock, rather than cash.


Exercise of Options

This is an action by an optionholder where the options are 'traded in' for securities at a set price.


Float / Initial Public Offering (IPO)

The initial raising of capital by public subscription to securities (such as shares) offered on the share market for the first time.


Non-Renounceable Rights Issue

The investor can choose to take up the rights offered, let them lapse, or trade them on the market.


Rights Issue

A new issue of shares for cash made to existing shareholders in proportion (e.g. one new share for every two shares held) to their existing shareholding for the purpose of raising additional capital for the company. It is usually issued at a discount to the market price.


Sale of Unmarketable Parcels

The sale of parcels of shares where the value is $500 or less.


Scheme of Arrangement

A reorganisation of a company's capital structure which is binding on creditors and shareholders.


Share Purchase Plan

A privilege granted to existing shareholders to purchase a predetermined number of share at a predetermined price (usually below the prevailing market price).


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