RE: Listing rule 7.1A14 Apr 2022 17:15
The prescribed minimum issue price is 75% of the volume weighted average price (“VWAP”)
53 for securities in the
relevant quoted class, calculated over the 15 trading days on which trades in that class were recorded54 immediately
before:
the date on which the price at which the securities are to be issued was agreed by the entity and the recipient
of the securities; or
? if the securities are not issued within 10 trading days of that date, the date on which the securities were
issued.
55
For convenience, whichever of these two dates is applicable is referred to as the “pricing date” and the 15 trading
days on which trades in the relevant class of equity securities were recorded immediately prior to the pricing date
are referred to as the “pricing period”.
Setting the pricing period as the 15 trading days on which trades actually occur immediately prior to the pricing
date, rather than a shorter period, is intended to minimise the risk that securities might be issued at an artificially
low price when there has been a temporary drop in the market price of the entity’s securities.
Setting the initial pricing date as the date on which the entity and the potential investor agree the price for the issue
and calculating the minimum price by reference to VWAP over the 15 trading days on which trades actually occur
immediately prior to that date allows the parties to calculate the minimum price required under Listing Rule 7.1A
with certainty at that date and ensure that this requirement has been satisfied. This is subject to the proviso that
the securities must be issued within 10 trading days of that date to ensure that the pricing is still reasonably current.
If the securities are not able to be issued within that 10 trading day period, then the pricing date defaults to the date
on which the securities are issued.
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