Earlier, the Capital Market Supervisory Board passed a resolution approving the amended regulations for newly issued share offering of listed companies through private placement. Essentially, the amendments contain the following provisions:  

  1. Cancel the approval application procedure, retain information disclosure in the shareholders' meeting notice, and require the opinion of an independent financial advisor (IFA) in the event of major changes;  

  2. Allow the remaining shares from a preferential public offering (PPO)* to be offered for sale through PP (equivalent to right offering (RO)) to give listed companies more funding flexibility while maintaining the ability to meet the targeted fund; and   

3. Revise the market price calculations, which are inconsistent due to different criteria for different types of securities offering, to improve clarity and practicality.  

The notification of the amended regulations has been published in the Government Gazette and will take effect as from 1 July 2023.

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Remarks:

* Regulatory Guillotine is the regulatory review of the existing laws and regulations. The reviewed laws and regulations that are unnecessary or do not keep pace with situations or remain obstacles to livelihoods or engagement in occupations will be abolished or revised to lessen burdens on people. By doing so, methods used must be done with speed, transparency and low costs with participation of all related parties. 

** Preferential public offering (PPO) is a general offering of newly issued shares exclusively to the existing shareholders at a subscription amount not exceeding their holding proportion. PPO requires approval of the shareholders’ meeting and the newly issued shares must be offered to every shareholder indiscriminately except any shareholder who, after share subscription, would cause the company to comply with foreign law.