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Hong Kong Exchanges and Clearing Limited (HKEX) has announced the arrangements for the adjustment to FIH Mobile Ltd (FIH) structured products, futures and options to account for FIH’s special dividend.
Overview
|
Company (Stock Code) |
FIH (2038) |
|
Corporate Action |
Special Dividend of US$0.01252 per share |
|
Ex-date |
29 May 2017 |
The special dividend amount per share in Hong Kong dollars (to be rounded up to two decimal places, if necessary) will be calculated at the rate of exchange quoted by FIH’s relevant banker at its middle rate of exchange prevailing on the date of the Annual General Meeting which will be held on 25 May 2017. More details of the capital adjustment will be announced in due course.
For details, please refer to the announcement made by FIH on 9 March 2017.
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Structured products with shares of FIH as underlying asset
The listing documents of all existing structured products with the shares of FIH as underlying asset contain provisions that deal with a cash distribution including a special dividend. Structured product issuers will make announcements in the evening of 26 May 2017 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price) and investors should read the contents of such announcements carefully.
FIH Futures
Trading Arrangements
The trading arrangements for the existing FIH stock futures under trading symbol FIH will be as follows:
| 1. | Adjustment and Transfer of Outstanding Positions Open positions of FIH stock futures series under trading symbol FIH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock futures series under trading symbol FIA. |
| 2. | Introduction of New Stock Futures Series for Trading On the ex-date, new FIH stock futures series based on the standard contract multiplier will be introduced for trading under the standard trading symbol FIH. |
Details of the adjustment procedures for FIH stock futures series under trading symbol FIH are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – special dividend – ordinary dividend) / (underlying stock closing price – ordinary dividend) |
Rounded to the nearest 4 decimal places |
|
Adjusted Contracted Price (ACP) |
Contracted price of outstanding stock futures series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Multiplier (ACM) |
Contracted price of outstanding stock futures series x (1,000 shares / ACP) |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability For Trading |
Addition of New Stock Futures Series on and after the ex-date |
|
Adjusted |
FIA |
ACM |
From ex-date to |
No |
|
Standard |
FIH |
1,000 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
FIH Options
Trading Arrangements
The trading arrangements for the existing FIH stock options under trading symbol FIH will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of FIH stock option series under trading symbol FIH which exist after the market close on the business day immediately before the ex-date will be adjusted and transferred to stock option series under trading symbol FIA. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-date, new FIH stock option series based on the standard contract size will be introduced for trading under the standard trading symbol FIH. |
Details of the adjustment procedures for FIH stock options series under trading symbol FIH are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
(underlying stock closing price – special dividend – ordinary dividend) / (underlying stock closing price – ordinary dividend) |
Rounded to the nearest 4 decimal places |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest 2 decimal places |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x (1,000 shares / AEP) |
Rounded to the nearest 4 decimal places |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-date |
|
Adjusted |
FIA |
ACS |
From ex-date to |
No |
|
Standard |
FIH |
1,000 |
From ex-date onwards |
Yes |
For detailed trading and clearing arrangements, please refer to the circular.
Investors should note that the adjusted and standard stock options have different contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.
