The Securities and Exchange Commission of Pakistan (SECP) has revised procedure for allocation of shares to retail investors on public offer of securities by issuers i.e. companies, special purpose vehicles and body corporate.
The SECP has notified SRO (I)/2020 here on Thursday for issuing draft amendments to Public Offering Regulations, 2017 for revision of procedure for allocation of shares to retail investors.
Under the regulations, "Issuer" in relation to securities, means any person including a company, a special purpose vehicle and a body corporate, who has issued or proposes to issue a security and includes an offeror.
However, the retail investor would cover an investor who bids for a security or make an application for subscription of a security out of the offer size allocated to the general public.
According to the revised regulations, the supplement to the prospectus shall contain the information relating to the strike price, the offer price, names of the underwriters of the retail portion of the issue if any, underwriting commission bifurcating as take up commission or any other, commitment by the successful bidders for subscribing the undersubscribed retail portion in case of 100 percent book building, category-wise break-up of the successful bidders along with number of shares allocated to them, dates of public subscription and such other information as specified by the commission.
Within three working days of the closing of the bidding period, the issuer itself or through its consultant to the issue, if any shall publish supplement to the prospectus in those newspapers in which the prospectus was earlier published and also disseminate the same to the securities exchange, banker to an issue and underwriter.
For this clause, the term supplement to the prospectus means information relating to results of the book building or any other information prescribed below that is important for the retail investors, the SECP added.
For the purposes of this clause the expression supplement to the prospectus means information relating to the strike price, the offer price, names of the underwriters of the retail portion of the issue, if any, underwriting commission bifurcating as take up commission or any other, commitment by the successful bidders for subscribing the undersubscribed retail portion in case of 100 percent book building, category-wise break-up of the successful bidders along with number of shares allocated to them, dates of public subscription and such other information as specified by the commission.
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