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6.0.4 Additional Rights Issue / Public Offering Operations (ER/EO Category) ​

6.0.4 Excess Rights / Excess Open Offer Operations (ER/EO Category) ​

Note: If a client requires multiple subscriptions, create an ER/EO category for the additional subscription.

a. On the "Corporate Actions" page, click "New" to add a corporate action.

b. Select manual creation: choose the announcement type (see 5.1 Announcement Types: ER (Excess Rights Subscription), EO (Excess Open Offer)) / Security (stock code) / enter the announcement number (must be unique) / select Ex-date or Record Date, then click "Confirm".

Quick create: only applicable when a CCNAN05 file has been imported.

The following example uses ER (Excess Rights Subscription).

c. After completion the entry will be displayed on the main interface. Click "Details" in the action column to fill in the information.

d. In the "Announcement Information" section, click "Edit"; fields marked with an asterisk (*) are mandatory. After entering the required information, click "Confirm".

  • Distribution: generally NOMINEE
  • Select Start Time: the time when clients begin making selections in the app
  • Select End Time: the time when clients finish selections in the app
  • Select End Time (CCASS): the CCASS end time
  • Payment Date: the system accounting date (viewable on the "Clearing Management > End-of-day Tasks" page; in the figure below the accounting date is January 30)

Note: The app currently does not support clients selecting ER/EO category corporate actions.

e. In the "Plan Information" section, click "Edit" to modify the subscription right details.

f. On the "Edit Plan" page, fields marked with an asterisk (*) are mandatory. The default plan is "Yes". After entering the information, click "Confirm".

  • Plan Type: "ER-Subscription" indicates an excess subscription;
  • Settlement Currency: the currency to be distributed
  • Allotted Security: the stock code to be distributed
  • Reinvestment Price: the price for the distributed subscription right

g. Mandatory information for ER and EO announcement types is listed below:

Note: ER - Excess Rights Subscription (exercise of excess rights); EO - Excess Open Offer (exercise of excess open offer)

The input fields and operation flow are the same.

(i). Plan Type:

ER - Excess Rights Subscription (exercise of excess subscription rights)

  • Settlement Currency: the currency to be distributed
  • Allotted Security: the stock code to be distributed
  • Reinvestment Price: the price for the distributed subscription right

(ii). Type:

EO - Excess Open Offer (exercise of excess open offer)

  • Settlement Currency: the currency to be distributed
  • Allotted Security: the stock code to be distributed
  • Reinvestment Price: the price for the distributed subscription right

h. In the "Fee Rules" section, review the fees to be charged. To modify fees as a one-time change, click "Edit". After completing modifications, click "Confirm".

i. If the announcement information, plan information, and fee rules are correct, click "Register" and then "Confirm" to submit the registration.

Note: The app has not yet integrated the feature that allows clients to select subscription rights.

j. After successful registration, the "Summary Details" section will display exercisable securities and the number of eligible clients.

k. In the "Client Details" section you can view eligible distribution clients.

  • Click "Add": to add individual clients to the distribution list;
  • Click "Delete": to remove a client;
  • Click "Details": to modify an individual client's fee information or the transfer allocation of entitlement information.

l. If any information has been modified, click "Re-register" to refresh the data. After confirming the information is correct, click "Collect Exercise Instructions" to proceed to the next step.

The time period must be sequential: Select Start Time < Select End Time < Select End Time (CCASS)

Check whether to notify clients, then click "Confirm"; the status will update to "Collecting Instructions".

Note: The app has not yet integrated the feature that allows clients to select subscription rights.

m. While in the "Collecting Instructions" status, you can edit the number of shares to be exercised for clients. In the "Client Details" section, click "Details".

n. Click "Exercise" to modify the client's actual additional exercised share quantity.

Ensure the client has sufficient funds in their account to be frozen for the subscription.

o. If you need to modify a client's registered exercise quantity, first click "Revoke" in "Other Information (rights, offers, etc.)" and then click "Exercise" to change the quantity.

p. After confirming the client's exercised share quantity, you may click "Complete Instruction Collection Early".

q. Then click "Submit Exercise Instructions".

Select whether to send a push notification to clients via the app.

r. Click "Backfill" to confirm the exercise quantities. You may choose non-original-value backfill or sub-account backfill and enter quantities, then click "Confirm".

Note: The backfill operation refers to the process of uploading selected client instructions to CCASS for processing and then backfilling the final CCASS processing results into the system.

s. After confirming the information is correct, click "Submit for Execution".

t. Reviewers may click "Download Report SDR040-03", select the PDF file, and view the corporate action details under "Report Management > Export List". If the information is correct, click "Execute Review".

u. After verifying the information, click "Approve". If selected, the app will send a push notification.

v. The status will update to "Execution Successful".

x. To review distribution records, navigate to "Asset Account > Account Details > Stocks" to view the transaction history.