A proposal to allow free zone companies in the state to put their shares for public subscription

13-03-2019 Media in\ Abu Dhabi
The Securities and Commodities Authority (SCA) has announced a draft amendment to its Chairman’s decision concerning the public shareholding system. The free zone companies have been added to the decision, which means that these companies will be allowed to put their shares to public subscription. Commission.
The Commission has directed its approach in this regard through the addition of free zone companies to the scope of application in the 2016 system, which stipulates under the proposal that, taking into account the provisions of the Companies Law, the provisions of the issuance and issuance of shares of public shareholding companies has become in addition to the shares of local and foreign companies, Free in the state after the approval of the Commission.
The Free Zone or the Free Trade Area was defined as being established in any emirate of the UAE. The Free Zone Company is defined as a limited joint stock company which is established or licensed to operate in free zones and wishes to put part of its shares in the State in accordance with the provisions of the system.
On the obligations of the listing consultant, the provisions of Article 25 of the Law have been amended so that new commitments have been added, including the commitment of the Consultant to provide the Authority and the market concerned at the time of inclusion with the so-called “Consultant’s Listing of the Form prepared by the Market to confirm the listed company’s compliance with listing requirements.
In addition, a new chapter has been added to the system, which includes a new article on the conditions of approval of the offering of free zone companies in the State, including limiting the public offering of shares to qualified investors only. The Free Zone Company shall be subject to a competent regulatory authority in the same area. Free.
The list of conditions allowing free zone companies to offer part of their shares for public subscription included 17 conditions according to the draft amendments prepared by the Authority on the system, including not less than the capital of the free zone company paid for 20 million dirhams and net shareholders’ equity is less than 100% of the company’s capital The shares offered for public subscription in the UAE shall not be less than 30% and not more than 70% of the paid-up capital. The Free Zone Company shall have been an independent activity as a principal activity or through one or more of its subsidiaries during the preceding two financial years Subtraction at least.