Where an existing public company wants to issue further shares via a rights issue, this...

The UAE rules governing capital increases by public joint-stock companies establish specific disclosure requirements for rights offerings. According to the CISI UAE Financial Rules and Regulations material, a rights issue must be announced at least 20 business days before the subscription period begins. The advance notice gives existing shareholders sufficient time to assess the proposed capital increase and determine whether to exercise, sell or otherwise deal with their subscription rights. The announcement is expected to provide material details such as the amount and percentage of the capital increase, the exercise price of the rights, the opening and closing dates for trading the rights, and the opening and closing dates for subscribing to the new shares. The rights themselves are traded separately from the existing shares for the prescribed trading period. The alternatives of 28 or 56 calendar days and 40 business days do not represent the minimum announcement period specified in the CISI material. Therefore, the required minimum advance announcement period is 20 business days, making option A correct.

================