DPS

DPS, or preferential subscription rights, allow existing shareholders to subscribe to new shares before the public, typically at a discount.

In Luxembourg, this mechanism protects shareholder interests during capital increases by ensuring they can maintain their proportion of ownership. It serves as a strategic tool for companies to raise funds while reinforcing investor loyalty. DPS provisions are clearly defined in the company’s Articles of Association and must comply with Luxembourg’s regulatory framework, balancing growth needs with shareholder protection.