Primary and Secondary Market Placement and Rights Issue

When a listed company has fundraising needs, it may consider issuing shares, bonds or convertible bonds. Placing and rights issue are common ways for listed companies to raise equity/debt/equity-linked funding.

Placing means that a listed company will select certain individuals/institutional investors and offer them new shares/bonds/convertible bonds. The company generally engages investment banks to act as placing agents to assist interested investors
Rights issue means the company issues new shares, allowing existing shareholders to subscribe for shares. A rights issue means that a listed company issues new shares for existing shareholders to subscribe. If such shareholders choose not to participate in the rights issue, their shareholding will be “diluted”

The fundraising activity is a commercial decision of the listed company. Although the regulator is not inclined to intervene, the company can consult the investment bank and seek a solution that meets its fundraising objectives.

Please consult Wings Securities and seek a solution that meets your fundraising objectives.

Placing Agent’s main job responsibilities

Mainly responsible for share/bond/convertible bond placement and distribution
Coordinate the company and intermediaries
Develop and implement the issuing plan
Make recommendation on the entire issuing structure
Assist the company in cooperating with the relevant regulators and the Hong Kong Stock Exchange (if needed) to communicate on the new share/bond/convertible bond placements
Review internal and external announcements and other documents

Financial Advisory’s main job responsibilities

Coordinate the company and intermediaries
Develop and implement the execution work plan
Make recommendation on the entire issuing structure
Assist the company in cooperating with the relevant regulators and the Hong Kong Stock Exchange (if needed) to communicate on the new share/bond/convertible bond placements
Review internal and external announcements and other documents

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Wings can handhold the client through the IPO process, ensuring that the underwriting and pricing of the IPO shares are done in a way that best protects the interests of the client.

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Wings can assist the clients in finding suitable M&A targets, including Hong Kong listed companies, to help accelerate the clients’ business development and expand their means of financing.

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Financial Advisory Services

Wings provides professional financial advisory services to listed and unlisted companies in Hong Kong.

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