Financial, So-called Rolling model for managing hyper-dilutive capital increases, Consob

Communication no. 0088305 of 05 October 2016

Resolution no. 19654 of July 5, 2016

Consob launched a public consultation on 10 February 2020 relating to the periodic review of the provisions concerning the so-called rolling model for managing capital increases.

The consultation follows Communication no. 0088305 of 05 October 2016, with which the Commission had established the entry into force of the rolling model on 15 December 2016, dictating specific recommendations to intermediaries, issuers and investors, aimed at facilitating its correct functioning.

The rolling model applies only to hyper-dilutive capital increases and its application has made it possible to avoid price anomalies recorded – in the past – during similar capital increases.

In Communication no. 0088305, in particular, decided to submit the rolling model to a three-year review, pursuant to article 8 of the Regulation concerning the procedures for the adoption of general regulatory acts (resolution no. 19654 of 5 July 2016), evaluating the suitability to “achieve the objectives pursued in relation to the overall burden of the regulatory framework.”

The consultation document is structured in four paragraphs, in which they are described respectively:

(1) hyper-dilutive capital increases;

(2) the rolling model;

(3) the concrete application of the model;

(4) and some questions are asked about the rolling model.

February 17, 2020

Consob Source