Rights issue

For a rights issue or an issue with preferential rights, the existing shareholders are given the right to subscribe for new shares in proportion to their previous shareholdings upon payment of cash and by application. In order to ensure that the proposed measures are practically possible, it is important that the company contacts Euroclear Sweden and an issuing agent prior to a decision concerning a rights issue.

Get in touch with your contact person at Euroclear Sweden and send a draft of the prospectus/terms and a time schedule. Inform us which issuing agent is to handle the issue in good time before the decision on a rights issue. Contacts with us as regards the execution of the rights issue are then made primarily by the issuing agent, but we will be happy to answer any questions concerning the handling procedures.

A decision with regard to a rights issue is made at a general meeting of shareholders or by the company board with a mandate from the general meeting. It is the responsibility of the company to inform the marketplace, the press and the shareholders. Those shareholders that are registered as shareholders on record day are allocated subscription rights in accordance with the terms.

The subscription rights permit the subscription for new shares at a specified price, or other compensation. 
Euroclear Sweden produces an issue report that is sent to the VPC account holders. If the issue reports are to be sent together with a prospectus or an information brochure, the issue reports are sent to the distributor chosen by the company.

The issuing agent registers the subscriptions and performs the other services agreed on between the company and the issuing agent. When the subscription has been completed, the company board must decide on the allocation of new shares. When the decision has been registered at the Swedish Companies Registration Office, Euroclear Sweden can execute the allocation of the new shares. 

 Read more in  Rules for Issuers and Issuer Agents section B 4.4


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