share issue


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Related to share issue: bonus shares

share issue

the process of issuing shares in a JOINT-STOCK COMPANY.

New share capital is most frequently raised through issuing houses or merchant banks which arrange for the sale of shares on behalf of client companies. Shares can be issued in a variety of ways, such as direct to the general public by way of an ‘offer for sale’ (or an ‘introduction’) at a prearranged fixed price; an ‘offer for sale by TENDER’ where the issue price is determined by averaging out the bid prices offered by prospective purchasers of the share subject to a minimum price bid; a RIGHTS ISSUE of shares to existing shareholders at a fixed price; or a placing of the shares at an arranged price with selected investors, often INSTITUTIONAL INVESTORS. See INITIAL PUBLIC OFFERING.

Where shares are issued by means of an offer for sale the company issues a PROSPECTUS inviting members of the public to subscribe for shares, such applications for shares being accompanied either by a proportion of the purchase price of the shares or by the full purchase price. Then the company arranges for the ALLOTMENT of shares to intending shareholders. If the share issue is oversubscribed with more applications for shares than the number of shares being issued, then the firm must use some formula to allocate shares among applicants. To cover for the possibility that the share issue will be undersubscribed companies usually contract with a merchant bank to have the issue underwritten, the bank purchasing any unsold shares. Successful applicants then pay any balance of the share price or a second instalment towards the final price in response to a ‘call’ by the company. At this stage the names of successful applicants are entered on the company's SHARE REGISTER and they become entitled to full shareholders' rights, including the right to receive ANNUAL REPORTS AND ACCOUNTS and to vote at the company's ANNUAL GENERAL MEETING. See STOCK MARKET, CALLED-UP CAPITAL, PAID-UP CAPITAL, ALLOTMENT, SHARE CERTIFICATE.

share issue

the process of issuing shares in a JOINT-STOCK COMPANY. New share capital is most frequently raised through issuing houses or merchant banks, which arrange for the sale of shares on behalf of client companies. Shares can be issued in a variety of ways, including: directly to the general public by way of an ‘offer for sale’ (or an ‘introduction’) at a prearranged fixed price; an ‘offer for sale by TENDER, where the issue price is determined by averaging out the bid prices offered by prospective purchasers of the share subject to a minimum bid price; a RIGHTS ISSUE of shares to existing shareholders at a fixed price; or aplacing of the shares at an arranged price with selected investors, often INSTITUTIONAL INVESTORS.

Where shares are issued by means of an offer for sale, the company issues a PROSPECTUS inviting members of the public to subscribe for shares, such applications for shares being accompanied either by a proportion of the purchase price of the shares or the full purchase price. Then the company arranges for the ALLOTMENT of shares to intending shareholders. If the share issue is oversubscribed, with more applications for shares than the number of shares being issued, then the firm must use some formula to allocate shares between applicants. To cover for the possibility that the share issue will be undersubscribed, companies usually contract with a merchant bank to have the issue underwritten, the bank purchasing any unsold shares. Successful applicants then pay any balance of the share price or a second instalment towards the final price in response to a ‘call’ by the company At this stage the names of successful applicants are entered on the company's SHARE REGISTER and they become entitled to full shareholders’ rights, including the right to receive ANNUAL REPORTS AND ACCOUNTS and to vote at the company's ANNUAL GENERAL MEETING.

See STOCK EXCHANGE, CALLED-UP CAPITAL, PAID-UP CAPITAL, ALLOTMENT, SHARE CERTIFICATE, SHARE PREMIUM, SHARE BUYBACK, INITIAL PUBLIC OFFERING.

References in periodicals archive ?
In July, Catena Media resolved on a directed share issue of a total of 1,440,454 shares as a prepayment to the final earn-out payment for US assets acquired in December 2016.
Before registration of the share issue, Dagon owns approximately 86.7 per cent of the share capital and approximately 88.5 per cent of the votes in Tobin Properties, corresponding to 36,311,225 ordinary shares and 18,378 Class A preference shares.
Karolinska Development AB (STO:KDEV), a Nordic life sciences investment company, announced on Monday the oversubscription of the share issue of its portfolio company OssDsign, prior to its listing on Nasdaq First North is oversubscribed.
The share issue is expected to take place by the end of next month.
The share issue is expected to increase the number of the bank's shares by up to 24.2 per cent, and is being offered at a price of EUR116 per share.
The club's official website and the match programme for the final League One fixture against Doncaster last weekend explained a possible share issue.
Garston-born Morgan, who has a pounds 312m fortune from building and hotel interests, believes a share issue is the only way to take a greater stake in the club and for Moores not to have to sell his stake.
Through this share issue, Green Landscaping's share capital increases by SEK11,459 to SEK2,556,785.
In the share issue, 115,275 own class B shares held by the company have been transferred without consideration to the key employees participating in the share based incentive programmes in accordance with the programme specific terms and conditions.
In our opinion, the statement is evidence that the government is considering financing Avtovaz with a new share issue.
Brookfield Properties Corporation announced the completion of its previously announced C$200 million Class AAA, Series F preference share issue. Brookfield issued 8 million Class AAA Preference Shares, Series F at a price of C$25.00 per share to yield 6% per annum, including 2 million shares issued on the exercise of an option granted to the underwriting syndicate.
M2 EQUITYBITES-June 18, 2019-Scanfil issues 544,554 new shares under a directed share issue in connection with HASEC acquisition