IPO in the era of COVID-19

Equity capital markets (ECM)

Companies which intend to undertake IPO during the COVID-19 pandemic may need to disclose the impact of COVID-19 on their business and operations in prospectus.

Some of the additional disclosure in prospectus during the COVID-19 pandemic may include:

– whether the pandemic and the movement control order (MCO) imposed by the government have caused delay to their supply of goods or services

– whether the companies are in breach of any of their contractual obligations due to the pandemic and the MCO

– whether the pandemic and the MCO have adverse financial impact on the companies

– the companies’ contingency plan in dealing with the impact of COVID-19

As with any other information in prospectus, the companies must ensure the above information, if disclosed in prospectus, must be true, not misleading and does not contain any material omission.

#malaysiancorporatelawyer
#malaysianIPO
#IPO
#howtoIPO

This post was first posted on Linkedin on 18 February 2021.

Linkedin Post
Earn-Out: A Postponed Dispute?

An earn-out is often the solution when a buyer and seller cannot agree on price. The seller believes the business is worth more than what the buyer is willing to pay upfront. So, the parties resolve the issue by deferring the portion of the price they cannot agree on, with …

Linkedin Post
The Disclosure Letter: Why Founders Selling Their Companies Should Not Treat It as an Afterthought

When founders sell their companies, the scope of legal work usually focuses on the share sale and purchase agreement (SPA). The disclosure letter is sometimes treated as secondary to the SPA but it should not have been the case. The disclosure letter sets out the exceptions to the sellers’ representations …

Linkedin Post
Third-Party Consents in a Share Sale: What Sellers Should Check Before Negotiating

When a company is sold, due diligence is usually conducted by the buyer, not the seller. That means the consents required from regulators, other shareholders, financiers or IP licensors to complete the sale are often only discovered when the buyer’s lawyers identify them during legal due diligence. By then, the …