What happens to my position if the company offers share purchase plan?

A share purchase plan allows a listed company to raise capital by offering shareholders the opportunity to apply for new additional shares – usually at a discounted price.

How do I take part in share purchase plan for share trading account?

If you would like to participate in a share purchase plan and buy shares, you’d first have to qualify by holding the shares position in the company at the close of business the day before the ex-date.

For qualifying shareholders, our corporate actions team will send you an email notification containing the terms of the share purchase plan, important dates and the available options for you to take on.

To participate in the share purchase plan, please reply to our corporate actions team email address with your indicated options before the IG deadline as indicated within the email. Additionally, please do ensure that there is sufficient funds in your account when instructing or the request may fail. Please do also note that we are only able to take in elections after post ex-date and any communication to take up the event before the ex-date will not be accepted.

Please note that the information we provide to you is preliminary. The application for and allocation of rights are subject to shareholder eligibility, which is determined solely by the company and can be changed/cancelled at the sole discretion of the company.

When will I receive the new shares?

Once you have elected successfully, we’ll create a new position of the share purchase plan with funds reserved. Please note that there can be a delay in the allocation of the new shares and the shares may not be credited on the pay date. It may take several days after the pay date for us to receive the shares. Once we have received the shares, these shares will be allocated to the accounts accordingly.

I am receiving fewer shares than I had elected, what happened?

Allocation of the new shares will be at sole discretion of the company and may be subjected to scale back. Any scale back will be applied in accordance with the terms and conditions of the offer, and may be made on the basis of the restriction level. An instruction to us is not a guarantee that you will be allocated any or all the shares you have subscribed for. IG holds no responsibility for share allocation outcomes or any failure for you to be issued the shares requested.

Please note: This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.