Disclosure requirements regarding the application for IPO shares
By Mabel Lui and Esther Leung
As part of its Simplification Series to improve disclosures in IPO cases, the Hong Kong Stock Exchange (SEHK) has issued a new guidance letter (GL64-13) on improving disclosures in (i) the ‘How to Apply for Hong Kong Offer Shares’ (HTA) section in prospectuses and (ii) White and Yellow Application Forms for IPOs. The SEHK considers the guidance to be necessary because, at present, the HTA section in prospectuses tend to be too lengthy and legalistic, which makes it difficult for investors to understand, while the font size in Application Forms is too small for investors to read.
According to the SEHK’s guidance, Application Forms should: be printed on A3-sized paper; be easy to read, i.e. the font size should be at least an equivalent of 12 Times New Roman font; and contain a reminder to investors that they should read the forms in conjunction with the prospectus.
On the other hand, the HTA section in prospectuses should contain more detailed information on the application procedures for the IPO shares. However, according to the guidance letter, any duplication of information between the HTA section and the Application Forms should be avoided unless necessary…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
Corporate liability: the Italian Supreme Court extends the scope of application of Legislative Decree No. 231/2001
The Italian Supreme Court has reconsidered the possibility of applying Legislative Decree No. 231/2001 to the so-called target offences of a criminal organisation.
In autumn 2011, Thailand suffered severe floods. Among the properties damaged were shops and distribution centres owed by a subsidiary of Tesco.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions