Securities and Exchange Commission unveils new IPO regulations

Securities and Exchange Commission unveils new IPO regulations

The Securities and Exchange Commission (SEC) has announced new criteria for companies wanting to raise funds through an initial public offering (IPO), requiring the names of 40 major share allocators to be disclosed at least two days before shares start trading on the bourse.

The SEC has updated its regulation, effective as of March 1, based on guidelines for better information disclosure, aiming to provide important information for investors in making their decisions in a timelier manner.

Under the updated requirement, companies have to disclose the information about those receiving the IPO shares and shareholders after the IPO, including the number of shares that are prohibited from selling under the lock-up requirement, the regulator said in a statement.

In addition, they have to reveal the first 40 most allocated recipients of IPO shares and the proportion of the allocations made compared to the total offering and the source of the allocations. Such information must be reported two business days before the first trading day of those IPO shares or within 30 days from the IPO's closing date, whichever day is due first, it added.

The company shall report the information via the system of the Stock Exchange of Thailand (SET). Then it is considered to have been reported to the SEC.

The announcement has been published in the Royal Gazette and came into effect on March 1. It applies to companies that submit effective securities offering registration forms after the effective date, noted the statement.

Meanwhile, the SET on Monday clarified that Miss Grand International (MGI) is a security that is not allowed to be sold short because it is not one of the large-cap stocks that the bourse permits for short selling.

Trading of MGI shares on Feb 29 and March 1, when prices closed on the Market for Alternative Investment at 30.2% lower and 6.59% higher when compared to the previous trading days, respectively, was found to be 98% traded by retail investors with only 2% via program trading. The proportion of program trading since the first day of trading until March 1 had not changed significantly.

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