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Understanding ASX Security Codes

This section explains why and how ASX security codes change, and how additional letters are appended to an ASX security code depending on an event (such as a reorganisation of capital). It also describes some of the more common ASX security codes that are used by ASX. 

Ordinarily, a listed entity will have a three letter ASX security code representing its ordinary securities quoted on ASX.  For example, XYZ Limited might have the ASX security code "XYZ" allocated to its ordinary shares by ASX.

Different ASX security codes are used on ASX's trading platform to identify a different basis of quotation during an event.  For instance, a listed entity that is reorganising its issued capital will be required to follow the timetables set out in ASX's Listings Rules.  Often the timetables prescribe that trading in reorganised securities is on a deferred settlement basis1. Consequently the basis of quotation for securities on ASX may have to change.

Reorganisation of Capital and ASX Security Codes

A listed entity which is reorganising its issued capital (for example, undertaking a share/unit split, share/unit consolidation) will, for a period of time, have additional letters appended to its ASX security code. During this period of time its quoted securities will be represented by a five letter ASX security code. The five letter ASX security code will apply whilst trading in the reorganised securities occurs on a deferred settlement basis.  The following is relevant.

  • The first three letters of the entity's ASX security code (e.g. XYZ) will remain for the entity's ordinary securities (for example, its fully paid ordinary shares, units or stapled securities).  Two additional letters are appended to the entity's ASX security code to signify a particular basis of quotation.  During a reorganisation of capital the letters 'DA' are most commonly appended to the entity's ASX security code. 
  • Where the entity also has additional quoted securities to its ordinary securities (for example, quoted options), the letters appended to additional quoted securities will be 'DB' through to 'DO'.

In some instances, where an entity has undergone more than one reorganisation of its issued capital, the previous reorganisation codes may still be active in ASX systems.  Therefore, if a search conducted under XYZDA does not return any results, a further search should be undertaken under XYZDB through to XYZDO.

Example:
This example illustrates how reorganisation codes will typically appear for an entity undertaking a reorganisation of its issued capital.  In this example, XYZ Limited (ASX security code 'XYZ') is undertaking a share consolidation.  It has the following securities quoted on ASX:

  • ordinary shares (ASX security code: XYZ)
  • two classes of options (ASX security codes: XYZO and XYZOA), and
  • partly paid ordinary shares (ASX security code: XYZCA).

As can be seen from the diagram below, XYZ Limited ordinary shares will be quoted under the code XYZDA indicating the fully paid ordinary shares in XYZ Limited are trading on a reorganised and deferred settlement basis.  The ASX security code will revert to XYZ once the entity has confirmed to ASX the securities have been entered into the holders security holdings.

 
XYZDA
'DA' indicates that the fully paid ordinary shares in XYZ Limited (ordinarily ASX security code XYZ) are trading on a reorganised and deferred settlement basis.

XYZDB
'DB' indicates that the first class of quoted options in XYZ Limited (ordinarily ASX security code XYZO) are trading on a reorganised and deferred settlement basis.

XYZDC
'DC' indicates that the second class of quoted options in XYZ Limited (ordinarily ASX security code XYZOA) are trading on a reorganised and deferred settlement basis.

XYZDD
'DD' indicates that the quoted partly paid ordinary shares in XYZ Limited (ordinarily ASX security code XYZCA) are trading on a reorganised and deferred settlement basis.

Following the end of the deferred settlement trading period and issue of the reorganised securities, the fully paid ordinary shares, the two classes of options and the partly paid ordinary shares will revert to ASX security codes XYZ, XYZO, XYZOA and XYZCA respectively.

Quotation of Additional Securities and ASX Security Codes

A listed entity may issue additional securities for various reasons, such as for raising capital or in the context of a merger/takeover or for an acquisition.  Additional securities may, for instance, be issued pursuant to a placement, a pro-rata issue (renounceable or non-renounceable), a scheme of arrangement or upon the conversion of convertible securities. 

When additional securities are issued, a fourth letter 'N' may be appended to the entity’s existing three letter ASX security code (e.g. XYZN) in the following circumstances:

  • Where the additional securities do not rank equally with the existing securities due to a dividend difference or deferred dividend entitlement.  The difference in ranking may remain until such time as advised by the entity (for example, until the next time the main class of securities is quoted on an ex-dividend basis).  Once there is no difference in ranking, the additional securities will merge with the existing class of securities and the ASX security code will revert to that of the existing class (e.g. XYZ).
  • Where the additional securities will trade on a deferred settlement basis.  Once deferred settlement trading ends, the additional securities will merge with the existing class of securities and the ASX security code will revert to that of the existing class (e.g. XYZ).

In some instances, where the entity has undertaken multiple issues of additional securities, the previous code representing those securities may still be active in ASX systems.  Therefore, if a search conducted under XYZN does not return any results, a further search should be undertaken under XYZNA through to XYZNZ.

Rights Issues and ASX Security Codes

A listed entity undertaking a capital raising pursuant to a renounceable pro-rata issue to all of its security holders will have a nil paid rights security class created.  The nil paid rights security is quoted and is tradeable in accordance with the timetable in ASX's Listing Rules.  The following is relevant.

  • The nil paid rights security entitles eligible security holders to exercise their rights, trade them on market or let the rights lapse.
  • A fourth letter 'R' will be appended to the entity’s three letter ASX security code (e.g. XYZR) to represent the nil paid rights security.

In some instances, where an entity has undertaken more than one renounceable pro-rata issue, the previous nil paid rights security code may still be active in ASX systems.  Therefore, if a search conducted under XYZR does not return any results, a further search should be undertaken under XYZRA through to XYZRZ.

 

1A settlement in which the obligation to settle on a trade date plus 3 business days (T+3) basis is deferred until the time following the issue date that ASX fixes.