Market Closed Date 28/07/2017
Reference Prices

The cases in which the Amman Stock Exchange (ASE) calculates reference prices for companies' shares, and the calculation methodologies:

1.      Increasing  a company's capital by private placement: 

By the end of the fifteenth day following the Jordan Securities Commission (JSC) Board's approval date on registering a company's capital-increase shares; the ASE -pursuant to the Instructions of Dealing with Subscription Rights issued by the (JSC)- calculates reference prices for the company's share and for its subscription right as following  :  

Reference price of the company's share =

 (The company's capital before increase × Closing price) + *Issuance proceeds

                             The new company's capital after increase

 

* Issuance proceeds = (The number of capital increase shares × Issuance price)

 

Reference price for the subscription right =

 Reference price of the company's share - Issuance price

 

2.      Increasing  a company's capital by stock dividends:

 

By the end of the fifteenth day following the Jordan Securities Commission (JSC) Board's approval date on registering a company's capital-increase shares; the ASE calculates reference price for the company's share as following:

 

Reference price of the share = The company's capital before increase × Closing price

                                                                  The company's capital after increase

 

 

3.      Decreasing a  company's capital by  redeeming accumulated losses or issuance discount:

Reference price of the share = The company's capital before decrease × Closing price

                                                                  The company's capital after decrease

 

 

4.      Decreasing  a  company's capital by returning back part of the capital to shareholders as cash:

Reference price of the share =

(The company's capital before decrease×Closing price)-Cash returned to shareholders

                                             The company's capital after decrease

 

5.      A Stock split case :

Reference price of the stock =                         Closing price                        

                                                      The par value of the stock before the split