Any funds with holdings in IHL (not many) will participate. There's no point not participating. Your heads are going to get price dilution regardless, so anyone not exercising their options will lose out. That's the way this was set up. They could've done 1-for-25 options at 60c (roughly), but it would've had lower takeup. Expect fairly close to 100% takeup of the 35 cent options - the only people who won't exercise are those not paying attention. Everyone else will either exercise, or sell Cum-Entitlement.
That said, I don't know many indices based on XAO, and even then, a lot of the index based funds don't actually buy EVERY share in the exact proportions (they'd need to buy and sell a lot every day to rebalance as price fluctuations would change the percentage). Most are designed simply to track the relevant index within a few points. You don't need every share to achieve that.
IHL Price at posting:
66.5¢ Sentiment: Hold Disclosure: Held
