RE: Authority to raise of up to 50% issued share capital10 Dec 2024 14:06
Must admit that I don't know much about the disapplication of pre-emption rights and trying to find out is a bit of a nightmare. Found the below but it states it's only up to 20% so not sure if it's correct.
The Pre-Emption Group (PEG) has published a revised Statement of Principles for the disapplication of pre-emption rights, along with new template resolutions. PEG is the group that represents listed companies, investors and intermediaries, and issues best practice guidance and documents for companies’ annual resolutions to disapply pre-emption rights.
The revised Principles implement one of the recommendations of the UK Secondary Capital Raising Review (SCRR), which looked at the regime for secondary capital raisings by listed companies in the UK and how it can be improved. The SCRR itself was launched in response to a recommendation of the Lord Hill UK Listing Review and our updated summary of the status of the various Hill Review recommendations is available here.
The revised Principles state that:
Disapplications of up to 20% – Investors will support companies that propose a special resolution at their annual general meeting seeking:
a general disapplication of statutory pre-emption rights over up to 10% of the company’s issued share capital, where the proceeds of the share issue can be used for any purpose; plus
an additional authority over up to another 10% of issued share capital, where the proceeds must be used to fund an acquisition or a specified capital investment (announced contemporaneously with the issue or occurring in the previous 12 months).