KASE Enhances Its Market Attractiveness for IPO Planning Companies
OREANDA-NEWS. September 03, 2010. Kazakhstan Stock Exchange (KASE) enhances its market attractiveness for companies planning the listing on KASE with the purpose of Initial Public Offering (IPO), reported the press-centre of KASE.
In order to stimulate issuers planning IPO on KASE, the Agency of the Republic of Kazakhstan on Regulation of Activities of the Regional Financial Center of Almaty (ARA RFCA) initiated amendments to KASE internal documents.
The draft of amendments # 1 to the KASE internal document "Listing Rules" have been developed by KASE jointly with ARA RFCA. As previously informed, mentioned amendments became effective from August 25, 2010 and stipulate among other benefits on listing fees payment for companies that include their shares to the KASE official list with the purpose of IPO, provided that these companies meet the following conditions:
- placed shares are being included to the KASE official list for the first time for IPO;
- shares are offered on KASE through one of the open trades methods;
- a fund raising volume through IPO, during six calendar months from the Listing Commission decision on these shares inclusion to the official list effective date, must make up not less than the equivalent of 1,000,000 MCI;
- at initial public offering shares must be acquired by not less 50 investors;
- by IPO results the number of free floating shares must make up not less than 10 % from the total number of offered shares of a listed company that initiated IPO (excluding an issuer bought back, burdened o blocked).
Provided observation of above conditions shares admittance initiator is released from payment of an entry and first annual listing fees.
Listing Rules with amendments # 1 is available on KASE website at
http://www.kase.kz/files/normative_base/listing_rules.pdf
In addition, KASE undertook responsibility on provision of information support to listed companies during IPO on KASE.
On August 13, 2010, by the KASE Managing Board decision has been defined the aforementioned information support order (hereinafter - the Order). The information support may include free of charger KASE organized and implemented measures using available exchange, shares offering issuer and its financial consultant resources:
- organization and implementation of an issuer offering presentation to representatives of interested persons, excluding the mass media (not more than 30 participants);
- organization and implementation of a briefing for the mass media representatives, with involvement of KASE, shares offering issuer and/or its financial consultant representatives;
- creation of a link on KASE website in the section "Events" and placement below it of the information and materials on implemented on KASE IPO (for example, an issuer presentation, a briefing for the mass media, etc), with a news on each publication;
- announcing of specialized trades on shares offering on KASE through an appropriate news on KASE twice a week during a month and the day before each specialized trades;
- organization and implementation of "The Company Day on KASE", including:
- an issue of special materials on an issuer and being offered shares as KASE news during the entire working day or negotiated period with a certain time interval;
- publication of being offered issuer marketing materials on the KASE website "Issuers" section pages, devoted to this issuer with announcement in each KASE news;
- placement of an issuer advertisement banner on the KASE website with a link to agreed on content or page in the Internet.
The specific list of measures, their implementation details, forms and methods of the information support are the subject of an agreement that should be signed between KASE and an issuer of being offered shares and/or its financial consultant.
The Order details are available on KASE website in Russian at
http://www.kase.kz/files/normative_base/kase_ipo.pdf
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