As Indonesia continues to paddle through the pandemic, the Financial Services Authority ("OJK") issued Circular Letter No. 20/SEOJK.04/2021 ("Circular Letter") to reaffirm and introduce relaxations to listing requirements aimed to safeguard the performance and stability of the capital market.
Some of the relaxations introduced under the Circular Letter are as follows:
- Financial statements for listing purposes, including for initial public offerings (IPOs), rights issue, and material transaction, are now valid for eight months instead of six months;
- The book building period in a public offering is extended to 42 business days from 21 business days;
- Issuers that have obtained an effective statement from OJK can postpone or cancel their offering with OJK’s approval;
- A public company that satisfies the conditions under the Circular Letter can increase their capital without pre-emptive rights; and
- Certain reports, including on the ownership and result of acquisition, can be submitted online.
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