Bangkok, 1 November 2017 ? The SEC is seeking public comments on the draft rules governing initial public offerings (IPOs) to cornerstone investors to create greater opportunity for success of IPOs with a large offering size, and benefit fund mobilization in the capital market.?

The proposed rules would be imposed on cornerstone participation in an IPO with a minimum offering size of 5 billion baht. In this regard, the cornerstone investors are major investors in the category of institutional investor, both domestic and international, such as financial institutions, insurance companies, mutual funds and provident funds. The allocation of shares to cornerstone investors would make an IPO more attractive to the investing public, and thus more likely to be a success. In addition, the exclusive determination of cornerstone investor as institutional investor would help to prevent share allocation to investors whose inappropriate trading behaviors may affect public confidence in the capital market.

Essentially, the primary existing regulations on IPOs which have come into force since late 2016 would remain intact, while certain provisions would be added or revised for more efficient supervision. For example, an IPO to cornerstone investors must not contain any agreement or contract that would render material benefits specifically to cornerstone investors for the disadvantage of other subscribers. This is to promote fairness and equality for all investors. Secondary public offering (SPO) of listed companies would also follow this general cornerstone approach.

In addition, the SEC is proposing the repeal of the trading lock-up rules whereby an offer for sale of shares that have been sold at a lower price than the SPO price are prohibited. This is to enhance the SPO process and allow an appropriate SPO offer price setting that would better respond to the changing market conditions.?

The consultation paper is available for the interested public's and stakeholders? comments at http://capital.sec.or.th/webapp/phs/upload/phs1508913208hearing_33_2560.pdf or via e-mail: nuchanat@sec.or.th or aimvipa@sec.or.th.

The hearing ends on 26 November 2017.?????

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