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