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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 the 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 the 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 the decrease

 

5. A Stock split case :

Reference price of the stock =                            Closing price                        

                                                      The par value of the stock before the split