Mrs. Patareeya Benjapolchai, the SET Executive Vice President, disclosed that the SET has established regulations to allow listed companies wishing to increase capital to existing shareholders to issue the TSRs, then bring them to list on the Exchange. This will provide more alternatives for investors as they can sell their subscription rights. Besides, the TSRs will also benefit listed companies and the capital markets as well.
"Previously, when a listed company offered the right offerings, if existing shareholders did not want to exercise their subscription rights, they could choose to either renounce the rights or sell shares before the XR (Excluding Right) posting date. But, now if a company chooses to issue TSRs, then investors will have more alternatives in deciding whether to exercise their subscription rights or sell them on the Exchange."
"The transferability of rights will benefit existing shareholders in that they can be exchanged for cash faster than subscribing for capital increase shares then selling them on the market after getting the shares. Besides, the transfer of rights also does not bother the shareholders in finding capital to subscribe for shares in a capital increase," Mrs. Patareeya said.
Mrs. Patareeya also added that: "Listed companies that issue TSRs will benefit as the TSRs facilitate full exercise of subscription rights as targeted. Moreover, the TSRs also enhance trading liquidity, as persons other than the shareholders wishing to subscribe to shares will have an opportunity to buy shares directly in the secondary market. The TSRs will be traded for no less than seven business days and no later than two months. Therefore, people who would like to trade TSRs will have to take into consideration the period remaining before maturity as well."
The TSR securities will be using the code of the issuing company followed by "-T" i.e. XXX-T. The securities will be traded on the Main Board, Odd Lot Board, and Big Lot Board (The Foreign Board will be exempted from this). The floor and ceiling prices will be between + 30% of the previous closing price of the underlying stock, except for the first day when there will be no ceiling and floor. The SET will post the "SP" sign on TSR securities three business days prior to its expiration so as to finalize a list of TSR holders wishing to exercise their rights in converting the TSRs into common shares or preferred shares.
According to the SET's regulation on TSRs for listed companies that increase capital to existing shareholders, Royal Garden Resort Public Co., Ltd. (RGR) has notified the Exchange that it would issue TSRs to shareholders appearing in the share registrar book as of August 7, 2003, 1200 hours, at two common shares per one TSR. The SET will post the XT (Excluding TSRs) sign on RGR on August 4, 2003 (three days prior to the share registrar closing date). After that the company will notify TSR rights holders of their eligibility, send additional information on capital increases to the shareholders, and will further announce the TSR trading date. For the company's news update, please see the SET's website at www.set.or.th under the "Company News" section.
