POWERED BY MOMENTUM MEDIA
ACSI urges ASX for disclosure on capital raising
The Australian Council of Superannuation Investors (ACSI) has requested the Australian Securities Exchange (ASX) Rights Issues Modernisation Proposal include disclosure on boards' rationales for the choice of one capital raising mechanism over another.
It wanted particular attention paid to pro-rata mechanisms in order to level the playing field and enhance the take up of pro-rata raisings such as renounceable rights issues and benefit members across the board, ACSI said in its submission to the ASX.
But the council did support the ASX's proposal to reduce the timetable for rights issues from the current standard of approximately 26 days to 16 days.
It said, in principle, ACSI supported working to reduce the timeframe further upon consultation around details including the mooted introduction of a retrospective record date to determine eligibility to participate in rights issues.
ACSI said reducing the time it takes to implement a rights issue aligned with its policy to protect the pre-emptive rights of existing shareholders.
Rights issues would become more attractive to companies who would also be able to undertake renounceable rights issues, according to ACSI, which said underwriting and management fees should also decrease with the introduction of the standards.
"We also look forward to further productive discussions with the ASX on broader aspects of Australia's capital raising system, where we believe that even more improvements can be made," ACSI chief executive Ann Byrne said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
