ASIC is seeking feedback on proposals to grant conditional relief for voluntary escrow arrangements and pre-prospectus communications in connection with an initial public offering (IPO).
We are seeking feedback on our proposals to grant relief through a legislative instrumenting the context of an IPO to:
- allow public companies, professional underwriters and lead managers who have obtained relevant interests as a result of voluntary escrow arrangements to disregard them for the purposes of the takeover provisions (but not substantial holding provisions); and
- permit companies to communicate certain factual information to security holders and employees before the company lodges an IPO prospectus.
Currently companies that are considering undertaking an IPO must apply to ASIC for individual relief and pay application fees. We are seeking feedback on proposals to reduce and simplify the regulatory costs for companies undertaking an IPO while maintaining investor protection and market integrity.
ASIC Commissioner John Price said, ‘It is important that voluntary escrow arrangements and pre-prospectus communications continue to be appropriately regulated so that our market remains orderly and transparent. The proposals strike a balance between reducing red-tape for an IPO and managing the risks that might otherwise occur in the absence of regulation’, he said.
Consultation Paper 328 Initial public offers: Relief for voluntary escrow and pre-prospectus communications seeks feedback on the proposed relief and the specific terms that should apply.
ASIC will accept submissions on CP 328 until 06 April 2020.
