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  • General Guidance on the Allotment

    • OFS-7.4.11

      The basis of allotment of any securities offered, must be clearly stated in the offering document.

      January 2014

    • OFS-7.4.12

      While exercising the allotment of securities the issuer, lead manager, or any appointed advisor must ensure that:

      (a) For any new public offering of equity securities, no subscriber is allotted more than 10% of the total shares offered;
      (b) All subscribers are treated equally and in accordance with the allotment basis in all aspects, particularly when the rounding up rule is applied;
      (c) No payment, direct or indirect in the nature of a discount, commission and allowance or otherwise may be made either by the issuer or the promoters in any public offer to the parties who received firm allotment;
      (d) No shareholder of the issuer may receive, directly or indirectly, any consideration in the nature of fees, commission, allowance or other benefit, whether in cash or in kind, in a public offering;
      (e) The total securities allotted must in any case not exceed the total securities offered and approved by the General Assembly and the issuer, lead manager and any other appointed advisor must establish the allotment basis to avoid such possibility;
      (f) Allotment of securities must avoid allocation of any securities fraction, and therefore the issuer must provide provisions related to the possibility of fractions of securities remaining after final allotment; and
      (g) For any rights issue, the pro-rata allotment basis must be applied, or otherwise the General Assembly of securities holders must have approved such other allotment basis.
      January 2014