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Scrip Dividend Scheme

Updated: 16 May 2017
OVERVIEW

HKEX offers shareholders the option of receiving their dividends in the form of new shares in HKEX instead of cash (“Scrip Alternative”) which may enable Shareholders to increase their investment in HKEX without incurring brokerage fees, stamp duty and related dealing costs. The first Scrip Alternative was attached to the 2010 final dividend.

In the event the Scrip Alternative is available for the dividend declared, HKEX will make it known in the relevant results announcement. A circular setting out the details of the scrip dividend scheme ("Circular") together with an election form will be sent to shareholders. In normal circumstances, shareholders can opt to receive dividend, in whole or in part, in the form of new shares instead of in cash, and they can also opt to receive scrip instead of cash permanently for all future dividends declared or proposed for which a Scrip Alternative is available.
 

PARTICIPATION

Participation in the scrip dividend scheme is optional.  Shareholders who wish to receive their dividends in cash do not need to return the election form.

Shareholders who wish to elect to (i) receive scrip, whether in whole or in part, in respect of the relevant declared dividend, or (ii) make permanent scrip election in respect of all future dividends to be declared or proposed for which a Scrip Alternative is available, are required to complete and return the election form to HKEX’s registrar before the prescribed closing time.

Please note that a permanent election for receiving scrip must be made in respect of a shareholder’s entire shareholding in HKEX. A shareholder who makes permanent election for receiving scrip will not receive election form unless and until the relevant shareholder revokes such election by notice in writing to HKEX’s registrar.

For non-registered shareholders whose shares are held through custodians or nominees who wish to participate in the relevant scrip dividend scheme, please contact your respective custodians or nominees.
 

WITHDRAWAL FROM PARTICIPATION

Shareholders, who have made permanent election for receiving future dividends in the form of scrip instead of cash, may revoke such election by giving a notice in writing to HKEX’s registrar.  Alternatively, such shareholders may make use of the revocation notice as enclosed with the Circular to withdraw from participating in the scrip dividend scheme, where applicable.
 

BASIS OF ALLOTMENT OF NEW SHARES

The price for conversion of the cash dividend to scrip (“Market Value”) is the average closing price of one HKEX share as quoted on the Stock Exchange for the 5 consecutive trading days (the relevant period of which HKEX shares are traded ex-dividend) ("Average Closing Price").

To facilitate Shareholders’ reinvestment of their dividends into HKEX shares, the Board has resolved to offer a 5% discount on the subscription price for Shareholders who elect the scrip alternative such that the Market Value is 95% of the Average Closing Price.  The subscription price will be published on the HKEX Group and HKEXnews websites as soon as practicable after closure of the relevant Market Value setting period, which would be no less than 6 business days before the prescribed election deadline as set out in the Scrip Dividend Circular.  This new arrangement is applicable to the interim dividend declared for the financial year 2015 and all subsequent dividends declared with a scrip alternative until otherwise determined.

The Market Values at which new shares were or will be issued under the scrip dividend scheme are set out below -

Financial Year /
Dividend
Market Value
setting period
Market Value
Announcement
Scrip Dividend
Circular
Market Value *
per share (HK$)
2010
Final dividend 13-19 April 2011 20 April 2011 28 April 2011 $181.14
2011
Interim dividend 24-30 August 2011 30 August 2011 7 September 2011 $142.06
Final dividend 25 April - 2 May 2012 2 May 2012 7 May 2012 $124.46
2012
Interim dividend 21-27 August 2012 27 August 2012 30 August 2012 $106.98
Final dividend 26 April - 3 May 2013 3 May 2013 8 May 2013 $130.32
2013
Interim dividend 27 August -
2 September 2013
2 September 2013 5 September 2013 $120.06
Final dividend 22-28 April 2014 28 April 2014 2 May 2014 $140.22
2014
Interim dividend 19-25 August 2014 25 August 2014 28 August 2014 $183.60
Final dividend 4-8 May 2015 8 May 2015 13 May 2015 $286.64
2015
Interim dividend 1-8 September 2015 8 September 2015 2 September 2015 $169.404
Final dividend 11-17 May 2016 17 May 2016 11 May 2016 $172.805
2016
Interim dividend 31 August -
6 September 2016
6 September 2016 31 August 2016 $183.008
Final dividend  10-16 May 2017  16 May 2017  10 May 2017  $186.048
   
* Effective from the 2015 Interim Dividend, the Market Value is 95% of the Average Closing Price.
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