YSX’s Listing Criteria
- If you want to list your company in YSX, firstly you need to know about YSX’s Listing Criteria.
- By knowing that you can consider :
- How much your company is ready to be listed in YSX?
- Is there something you have to change in management structure or corporate governance?
- Is there any gap between your company’s current situation and YSX’ listing criteria?
- If there is a gap, how will you plan to fix this?
- The length of time required for listing rely on readiness of your company.
- If the gap is small, you wouldn’t need so much restructuring. So, your company can list on YSX in a short time.
- If you want our advice about your company current situation, you can contact us. You can directly come over to our office or you can invite our underwriting team to your company.
|YSX’s Listing Criteria
|Business expectation ||Financial||Corporate Governance
|1.Public Company||3. Minimum of 5000 lakhs paid up capital||6. BOD, good Characters
|2. 100 shareholders and above||4. Profitable for past 2 years before the date of application||7. BOD, no Deceptive manners
|14. Sound Business plan||14. Sound Business plan||8. BOD, no conflict of interest
|10. Accordance with MFRS / IFRS, MSA / ISA ||9. BOD, no blacklist
|11. Pay Tax||12. Disclosure of information to public
|17. Rational expectation for profit||13. Appoint Compliance Officer
|15. Insider Trading Prevention
|16. Soundness Internal Control System
Key Processes(Between Applicant company and Underwriter)
|Restructuring||• Business Restructuring|
|• Corporate Governance Restructuring
|• Financial Restructuring
|Due Diligence & Valuation||• Confirmation Process
|• Determining the value of the company and thus the price of shares
|Compliance||• Preparing Disclosure Documents
|• Filing with SECM and YSX
|Promotion||• Public Announcements
|Book building||• Testing Demand
|• Final Pricing & Share Allotments
- To consider whether listing the whole group or just listing a subsidiary.
- To make necessary restructuring of management structure
- To start to commence planned financial and business plan
- To adopt leading practice of corporate governance reporting process
- To establish financial reporting procedure and to begin preparation of historical financial information
- To review and implement compliance control system
Due Diligence & Valuation
- Due diligence is needed to proceed before making valuation of the applicant company.
- Due diligence is a comprehensive appraisal of a business, especially to establish its assets and liabilities and evaluate its commercial potential.
- To start to commence due diligence, the applicant company need to prepare the corporate filings first.
(e.g Regulatory Filings, Tangible property, Intellectual property, leases, Insurance, Audit reports, Tax records, Corporate Information, Business agreements and other material corporate transactions, etc. )
- When valuing the applicant company, offering share price is calculated in (3) valuation method.
- This Market Assessment Report is summited to YSX.
Promotion & Book Building
- After receiving approval from SECM, the applicant company can make public announcement followed by roadshows.
- To offer shares to existing shareholders (rights offering) and general public (public offering) with providing prospectus through underwriter securities companies*.
* Multiple securities companies make up a syndicate group for offering as usual.
- Testing demand is setting a price range announced by the company and the underwriters rather than setting a specific price. By this way, the company and the underwriters let the customers decide in which price they want to buy the offering shares.
- And then, the company and underwriter set the final price according to the demand.
- After finishing share allotment process, the applicant company get listed on YSX on the listing date.
- To complete drafting the prospectus or DDL.
- To prepare listing application documents.
- To summit that documents to YSX for listing examination.
- YSX’s listing examination takes at least 7 weeks, in general but the schedule may be extended depending on the company’s situation.
- Listing examination is conducted through reviewing applied documents, interviewing with staff, Auditor and company’s management and field examination as necessary.
- YSX judges listing eligibility of a company in terms of meeting the listing criteria such as business and financial soundness, corporate governance and internal management system.
- And then, YSX will makes an announcement of listing approval and a listing date of the applicant on YSX’s website.
- To lodge prospectus with SECM and to receive an approval of offering shares.