Sunday, 22 September 2019

Public Offering


  1. Criteria for the issuance of stocks to the public
  1. Any companies wishing to issue securities for public offering shall meet the following criteria:
  2. 1.
    1. Being public company established in accordance with Lao Enterprise Law;
    2.

    1. The company must run business more than 3 years before submitting the issuing file, except the company previously merged, acquisitioned or changed the form of business but originally the mentioned company must run business more than 3 years before changing the form of business​;
    3.

    1. Board of directors shall include independent director at least 1/3 of total members and audit committee must consist of at least three BOD members, with at least one member having financial and accounting knowledge;
    4.
    1. At least 3 people in the internal audit committee assigned by BOD and 2/3 must be independent members and at least one of the committee members must have accounting or financial background;
    5.
    1. Having a plan for offering and use of capital received from the offering which approved by general shareholder’s meeting;
    6.



    While doing filing, the company must submit last year audited financial statements with green opinion or qualified opinion with less impact to performance and financial position of the company
    7.
    1. Have not changed the form of the company during last 3 years;
    8.

    Having at least 1 billion kip sales before filing day, in the financial statement must not contain retained loss and overdue loan. Furthermore,  last year net profit must be positive;
    9.
    The certificate of preparedness for offering from securities firm (finance advisor);
    10.
    1. Entering into contract with underwriter;
    11.

    1. Having public offering plan as well as 3 years business plan and forecasted financial position which approved by BOD;
    12.
    1. Other criteria and conditions as stipulated by the LSCO.


  1. - Application documents for public offering
  1. The application documents shall include the following documents
  2. 1.
    1. An application form of IPO as defined by the Office;
    2.
    1. A certified copy of the company’s business registration certificate;
    3.
    1. A certified copy of the company’s tax registration certificate;
    4.
    1. A copy of company’s regulation;
    5.
    1. Resolutions of the General Shareholder’s Meeting approving the plan for offering and use of capital received from the offering of securities to the public;
    6.
    1. The list of principal shareholders who hold a company’s share from 1% of total shares;
    7.
    1. The company’s charter; the curriculum vitae of members of the Board of Management;
    8.
    1. The certificate of preparedness for offering from securities company;
    9.
    1. last year audited Financial statements by an approved external auditing company;
    10.

    1. Plan for offering and use of capital received from the offering of securities to the public, 3 years future business plan and financial forecasting;
    11. The prospectus;
    12.
    1. Contract with underwriter
    13.
    1. Opinion of internal audit committee about previous year business performance;
    14.
    1. Criminal Record;
    15.
    1. Other documents as specified by the LSCO.

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