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New provisions to improve prospectus regime
(CRIENGLISH.com)
Updated: 2004-10-10 15:41
Hong Kong will implement a law amendment designed to simply procedures for
companies going public through an initial public offering.
A Hong Kong government spokesperson has announced that December 3, this year
will be the commencement date for the prospectus-related provisions of the
Companies Amendment Ordinance 2004.
The provisions on prospectus -- a document giving details of a share offer
for prospective buyers -- are expected to help ease a company's compliance
burden and accommodate new offering structures and offering methods in the
issuance activities of the local capital market.
Major improvement measures contained in the ordinance include exempting 12
types of offers from the prospectus regime such as offers to "professional
investors" and offers to no more than 50 people.
The changes to the prospectus regime are the second phase of a three-phase
exercise to review the existing regulatory framework in Hong Kong for offers of
shares and debentures.
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