Regulatory Alerts2019-12-27
Added · Updated
Amendments in the Public Offering Regulations, 2017
The Securities and Exchange Commission of Pakistan amends the Public Offering Regulations, 2017 to impose stricter profitability and disclosure requirements on loss-making issuers and green field projects, mandating that sponsors retain at least 51% of post-issue capital until two consecutive years of net profit are reported. The amendments revise eligibility criteria for book building bids, increase the minimum bid margin from five percent to ten percent, and allow book runners to waive this margin for institutional investors at their discretion. New provisions require issuers to offer an exit opportunity to dissenting shareholders if the principal purpose of the issue changes, and update prospectus formats to include specific risk warnings and undertaking statements by chief executives and financial officers.