ASIC has released Regulatory Guide 189: Disclosure relief for rights issues (RG 189). This regulatory guide explains the relief ASIC has given in Class Order (CO 08/35) Disclosure relief for rights issues. This includes relief:

• for accelerated offers to institutions;
• from the requirement to lodge multiple cleansing notices;
• for disposal of a shortfall (e.g. through a book-build); and
• to make offers of shares to convertible security holders

CO 08/35 also gives technical relief in relation to
the treatment of foreign holders, offers of stapled securities and
rounding of entitlements.

The aim of the disclosure exemption is to encourage
companies to use pro rata rights issues, rather than placements, so
retail investors can participate,.

ASIC considers that any rights issue should fall
within the disclosure exemption where it provides an equal opportunity
to all holders to participate and does not compromise retail investor
protection.