Investor Presentaiton
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Pre-IPO equity investment (cont'd)
Exchange considers that where the investment is made very shortly before an IPO, the pre-
IPO investor cannot be said to have taken any special risk different from that taken by the IPO
investors, which would justify the pre-IPO investor having protections under the terms of the
pre-IPO investment.
The general principle is that atypical special rights or rights which do not extend to all other
shareholders are not permitted to survive after listing.
PERMISSIBILITY OF SPECIAL RIGHTS/OBLIGATIONS
The 28/180 Day Requirement - Pre-IPO investments are required to be completed either at
least 28 clear days before the date of the first submission of the first listing application
form or 180 clear days before the first day of trading. Pre-IPO investments are only
considered completed when the funds are irrevocably settled and received by the applicant.
Price Adjustments Disallowed: Any price adjustment provisions, such as a guaranteed
discount to the IPO price or share price or an adjustment linked to the market capitalisation
of the shares, is disallowed.
CHARLTONS
易周律师行
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