UK Secondary Capital Raising Review Launched

HM Treasury has announced the U.K. Secondary Capital Raising Review, requesting recommendations on improving the U.K. capital raising process for publicly traded companies. The Review stems from Lord Hill's recommendations in the U.K. Listing Review, published in March 2021, which proposed that consideration should be given to improving the efficiency of further capital raisings by listed issuers, including by re-establishing the Rights Issue Review Group and assessing capital raising models used in other jurisdictions.

A Call for Evidence has been issued, as the first step in the Review, calling for feedback on the key themes of the Review, including:

• Reduction of the overall duration and cost of the existing U.K. rights issue process and how that could be achieved.
• The role that new technology plays in the process to ensure that shareholders receive relevant information in a timely fashion and can exercise their rights.
• Fund-raising models in other jurisdictions that should be considered for use in the U.K.
• Improved transparency introduced by the Short Selling Regulation.
• The potential for refining the undocumented secondary capital raising process.

Responses to the Call for Evidence may be submitted until November 16, 2021.

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