ADVOKS GLOBAL · KENYA
The Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023
40. Qualitative and Quantitative criteria
Edition: 2023-12-15 · In force
40. Qualitative and Quantitative criteria
(1)An issuer applying for listing of its equity securities on the Main Investment Market Segment or Small and Medium Enterprises Market Segment must be suitable for listing and is not permitted to adopt a dual class share structure at an initial public offer.(2)In assessing the suitability of the special purpose acquisition company under subregulation (1), the Authority may take into account any relevant factor including—(a)the business objective and strategy of the issuer;(b)the profile including the track record and repute of the founding shareholders, and experience and expertise of the management team of the issuer;(c)the alignment of interests of the founding shareholders and management team with the interests of other shareholders, including potential losses and returns to the founding shareholders and the management team, and other shareholders;(d)the sufficiency of gross proceeds to be raised from the special purpose acquisition company initial public offering to undertake a business combination which will—(i)enable the issuer to have an identifiable core business with sufficient size and scale; and(ii)offer reasonable returns to shareholders based on the equity capital employed;(e)the proportion of rewards to be enjoyed by the founding shareholders and management team as compared to the expected and timing of shareholder value creation;(f)the quantum of discount to the special purpose acquisition company initial public offering issue price at which securities of the issuer are issued to the founding shareholders and the management team, if any;(g)the intended use of the special purpose acquisition company initial public offering proceeds that have not been placed in the escrow account;(h)the dilutive features and events which may impact shareholders, and whether there is any mitigation for such dilution; and(i)the escrow arrangements governing the funds in the escrow account.(3)For avoidance of doubt, the discount contemplated in subregulation (1)(f) shall not result in a price that is lower than the nominal value of the securities or a price lower than fifty per cent of the price of the securities issued to the other shareholders.