• Commitment to underwrite Securities

    • PRU A6.8.3 PRU A6.8.3

      (1) For the purpose of Rule A6.8.1, an Authorised Person underwrites or sub-underwrites an issue of Securities where:
      (a) it gives a commitment to an Issuer of Securities to underwrite an issue of Securities;
      (b) in the case of new Securities (as defined in Rule A6.8.4) it gives a commitment to a seller of Securities to underwrite a sale of those Securities;
      (c) it gives a commitment to a Person, other than the Issuer of Securities or, if (b) applies, the seller of the Securities, to sub-underwrite an issue of Securities; or
      (d) it is a member of a syndicate or Group that gives a commitment of the type described in (a) to (c).
      (2) Unless a Rule deals with an issue of Securities separately or the context otherwise requires, a provision of Section A6.8 that deals with Underwriting also applies to sub-Underwriting.

      • Guidance

        Block trades, including bought deals, and private placements are not within the scope of this Chapter because they involve an outright purchase by an Authorised Person of the relevant Securities.

    • PRU A6.8.4

      For the purposes of Rule A6.8.3(b), an Authorised Person must treat Securities as being new if they are:

      (a) Securities that, prior to the allotment following the Underwriting, were not in issue; or
      (b) Securities that have not previously been offered for sale or subscription to the public and have not been admitted to trading on a market operated by a Recognised Body or an overseas investment exchange.