Preferential issue floor pricing requires VWAP-based minimums and recomputation for recently listed frequently traded shares. Preferential allotments of frequently traded equity must meet a VWAP-based floor price: for sufficiently long-listed shares the floor is the higher of two VWAP averages over longer and shorter look-back windows; for shorter-listed shares the floor is the highest of the IPO/scheme price, average VWAP since listing, or the two-week VWAP average. Prices recomputed after the post-listing period can create a pay-in obligation if higher than the allotment price; Articles of Association may prescribe a higher floor that prevails.
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Provisions expressly mentioned in the judgment/order text.
Preferential issue floor pricing requires VWAP-based minimums and recomputation for recently listed frequently traded shares.
Preferential allotments of frequently traded equity must meet a VWAP-based floor price: for sufficiently long-listed shares the floor is the higher of two VWAP averages over longer and shorter look-back windows; for shorter-listed shares the floor is the highest of the IPO/scheme price, average VWAP since listing, or the two-week VWAP average. Prices recomputed after the post-listing period can create a pay-in obligation if higher than the allotment price; Articles of Association may prescribe a higher floor that prevails.
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