AN INTRIGUING ANNOUNCEMENT
Recently the JSE made an interesting announcement about the terms of the listing rules around rights issues. It says that the industry has commented that it “takes a lengthy period of time to raise capital on the market through means of a rights offer”, and the JSE is proposing to reduce this. Now, much of the process actually takes place at company level but once it goes to market it takes 31 days, and the new process will take only 21 days. The difference is only five days instead of 10 days to exercise rights for those who have not dematerialised their shares. In other words, get your shares dematerialised – can’t argue with that.