Pre-Emption Group reports UK companies embrace enhanced capital raising flexibility
News types: Publications
Published: 22 November 2024
Issued on behalf of the Pre-Emption Group (PEG).
The Pre-Emption Group has today published its second report monitoring the use of its updated Statement of Principles on the disapplication of pre-emption rights for UK listed companies.
The report highlights growing confidence in the 2022 Principles, with 67.1% of FTSE 350 companies with an AGM during the period seeking enhanced disapplication authority. This represents a significant increase from the previous year's 55.7%.
Pre-emption rights give existing shareholders of a company priority to participate in future share issues, protecting their ownership stakes from being diluted. UK companies can seek authority from shareholders to disapply these rights through special resolutions at general meetings.
Key findings from the report covering annual general meetings from 1 August 2023 to 31 July 2024:
- 67.1% of FTSE 350 companies sought enhanced disapplication authority
- 64.1% requested authority for a specified capital investment
- 99.4% had all disapplication resolutions passed, with an average of only 4.7% votes against
Sir Keith Skeoch, PEG Chair, said:
"Our latest annual report finds continued widespread use of the 2022 Principles to seek enhanced disapplication authorities. As the UK looks to prioritise the growth and competitiveness of its markets, the Group has an important role in overseeing the balance between shareholder protections and efficient capital raising structures."