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New Listing Rules for Cayman Islands Stock Exchange

New listing rules published by the Cayman Islands Stock Exchange (the "CSX") in April 2017 will enable an easier listing of pre-IPO and early stage growth companies as "Specialist Companies" pursuant to a new Chapter 14 of the CSX listing rules. The ownership and transfer of the securities issued by such companies will be restricted to qualified investors.

Introduction

New listing rules published by the Cayman Islands Stock Exchange (the "CSX") in April 2017 will enable an easier listing of pre-IPO and early stage growth companies as "Specialist Companies" pursuant to a new Chapter 14 of the CSX listing rules. The ownership and transfer of the securities issued by such companies will be restricted to qualified investors.

The CSX, which already attracts international issuers with an aggregate market capitalization in excess of USD 200 billion, could become even more successful with this new development, as early-stage investors are provided with an early exit and/or additional liquidity.

The New "Specialist Companies" Listing Regime

1. Start-Up Favourable. Section 14.2 of the CSX listing rules now provides for the possibility for companies without a two-year audited financial statements track record (the equivalent of a start-up company) to be listed if they:

For start-ups, Section 6.18 of the CSX listing rules specifically requires that the CSX be provided with a detailed business plan which must identify, as appropriate:

Other conditions and requirements for start-ups include:

2. Restricted to Qualified Investors. The listing under the ‘specialist companies’ regime requires that the ownership and transfer of the equity or debt securities be restricted to qualified investors only, namely those investors that:

Also, a declaration must be included on the cover page of the listing document, with the investors representing that:

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Posted by Kay Merrick 2017-04-24 15:08:29 Facebook LinkedIn Twitter Comodo SSL