In response to the announcement by the Pre-Emption Group (PEG) today, Gary Simmons, Managing Director of High Yield and Equity Capital Markets, said:

“The recent social and economic restrictions placed on businesses to stop the spread of the COVID-19 virus has had a significant impact on UK businesses and markets. AFME’s Equity Capital Markets group therefore welcomes today’s statement by the Pre-Emption Group to temporarily relax the guidelines relating to pre-emption in issuances by companies of up to 20% of their issued share capital during this period of unprecedented market turbulence. This follows an initial suggestion by AFME’s Equity Capital Markets group to the Pre-Emption Group to take a pragmatic and flexible approach regarding the fact that certain companies will likely need to raise capital very quickly, and within limited marketing windows. AFME recommends that its members follow the guidance in the PEG statement, given that the announcement is consistent with the objectives of the AFME ECM Board.”

-ENDS-