Brokering of subscription rights
Under certain specific circumstances, German companies are permitted to execute a capital increase without a prospectus – but in this case, a capital increase can only be directly offered to current shareholders, and these “subscription rights” (Bezugsrechte) cannot be traded on the exchange. But what if an investor does not have the ability or desire to exercise these subscription rights? What if the investor does not want to let rights expire and thus become worthless, or to surrender them to a major shareholder without payment of compensation? What if an investor, as an existing shareholder in the company, seeks to purchase more subscription rights than those to which he or she is already entitled?
It is precisely for these reasons that SCHNIGGE has created a service for brokering these subscription rights. This service does not represent a public market or a public offering because it is directed solely to potential buyers who are already shareholders in the company. These are investors who have already been granted subscription rights in the current capital increase and who are thus permitted to purchase the subscription rights of other shareholders.
Should a shareholder be interested in selling subscription rights, or in buying subscription rights in addition to those already held, the shareholder’s bank can submit a brokering order to SCHNIGGE. We then do our best to match supply and demand.
A list of subscription rights currently being brokered by SCHNIGGE may be found by clicking here.
In addition, answers to some frequently asked questions (FAQ) may be found by clicking here.
Please note that private investors can only submit orders via their own bank, and only if they are shareholders who are already recipients of the subscription rights. If you meet this requirement and would like to buy or sell your subscription rights, please contact your bank. We regret that we cannot accept orders directly from private individuals.