Capital Increase: Stocks Early sale (Pre-selling)
On the occasion of a capital increase, customers have the option of carrying out an early sale (pre-sale) of the securities arising from the exercise of the rights, two days before the securities' delivery, and thus taking advantage of the stock exchange's delivery date.
We illustrate here the procedure to be followed. (please keep in mind that the rights exercise is an essential condition for the early sale).
1) Access the link provided for the exercise of the rights that will appear (only for those who are in possession of rights) on the access page and at point 3.g of the INFO page on your Trading Account.
2) Enter the number of rights you want to exercise (it is mandatory to have the sufficient liquidity without considering leverage effect). You can cancel your request until the end of the same day by using the cancel button
Cancellation is possible only during the day in which exercise is requested, from the day after onwards it will become 'IRREVOCABLE'.
3) Request a security loan through the button Loan found on the Order Entry Form
4) Proceed with the short selling of the security in the usual way.
Stocks early selling can be modified or cancelled only in the same day
follow these instruction In order to cancel them:
- First: cover your short position by purchasing stocks on the Market
- Second: close the security loan
- Third: request the cancellation of the rights' exercise
From the day after the "Early selling" it will be possible to close the short position and the securities loan. But the right's exercise will remain IRREVOCABLE: new shares are necessary, at the value date, to "deliver" the shares previously sold in the "short selling".