FYI- BLOCK LISTING3 Oct 2016 14:48
Investment companies – In the case of investment companies, a block listing may
be appropriate in certain circumstances, for example issuers needing to issue shares
to satisfy demand that cannot be met in the market. This situation may also create a
short position, which can have an effect on the share price, perhaps creating excessive
premiums that may prove detrimental to existing shareholders reinvesting, and to new
investors trying to acquire stock.
We recognise that the ability to use a block listing in situations such as these can be
a useful tool for investment companies to manage premium volatility, and that price
discount and premium management is a legitimate activity.
We would take these arguments into consideration where we receive clear evidence of:
• a meaningful demand from third parties wishing to invest on a regular, if not
almost daily basis; or
• where a meaningful time delay of having to make a one-off application would
inhibit the ability to issue shares to investors etc.