IPO: Property related issues

Equity capital markets (ECM)

The Prospectus Guidelines require material properties owned and rented by a company seeking for listing and its subsidiaries to be set out in prospectus. Further, the prospectus must set out the relevant laws, rules or requirements governing the group’s business and environmental issue which may materially affect the group’s business or operations. If there has been any non-compliance, the guidelines prescribe the details to be set out in the prospectus.

A company seeking for listing should ensure:

  • Where the property is “designated premises” as set out in the Fire Services (Designated Premises) Order 1998, there is a valid fire certificate.
  • The property has a valid certificate of completion and compliance or certificate of fitness for occupation.
  • The use of the property complies with the category of use in accordance with its land title.
  • The local authority has approved the building plan of the entire premises including any extension.
  • If the property is rented, the tenancy is valid and the use of the property is in accordance with the terms of tenancy.

As it takes time to rectify property related issues, a company seeking for listing should discuss rectification steps with its advisers as soon as possible.

#malaysiancorporatelawyer
#IPO
#howtoIPO

This post was first posted on Linkedin on 29 March 2021.

Linkedin Post
M&A: What you need to consider for sale and purchase agreement

Before diving headlong into drafting the sale and purchase agreement for an M&A transaction, take some time to understand the business of the target company and the regulatory framework in which it operates. Consider the following: 1. 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀: What are the business activities of the target company? What products or …

Linkedin Post
Five key steps for legal due diligence

Most lawyers are good at identifying issues, but legal due diligence shouldn’t be limited to merely reviewing documents and identifying issues. Here are my five steps for conducting legal due diligence: 1. Identify the issues based on the scope of legal due diligence as agreed with the clients. 2. Provide recommendations …

Linkedin Post
Begin with the end in mind: Post-completion integration

I once worked on an M&A deal that took more than a year to complete. While the deal was not inherently complex, it dragged on due to delays in finalizing the details of the transaction agreements for reason beyond my control. As the deal involved a larger corporation acquiring a …