Rights Issues Subscription Periods

February 13, 2009
In response to feedback from its recent consultation paper on the reduction of the minimum subscription period for non-statutory rights issues, the FSA has decided to reduce the Listing Rules’ minimum rights issue subscription period from 21 calendar days to 10 business days with immediate effect. This update reviews the FSA’s decision, which is seen as an improvement to the efficiency of rights issues that should reduce the risk to underwriters and, in a competitive market, reduce the cost of capital.