Regulatory Alerts2022-06-29
Notice on Initial Public Offer (IPO) and Rights Issues
The Securities and Exchange Commission mandates strict adherence to disclosed purposes for IPO and rights issue proceeds, requiring full fee disclosure and refunding of undisclosed payments by lead managers. The regulator caps total flotation costs at five percent of raised proceeds and requires shareholder approval via general meeting for any change in fund utilization. Furthermore, issuers must appoint an independent reporting accountant distinct from their external auditors and routine service providers to ensure transparency.
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