The new rules allow firms in the country to use existing shares when listing on local exchanges or raising fresh equity capital.
Laws governing initial public offerings (IPO) in the country have long been seen as restrictive, including the need to list a minimum of 55 per cent of a company and for only allowing the sale of new shares when going public.
This has led many firms to seek listings outside the country in recent years, such as oil services group
The document didn't specify a minimum percentage any seller could offload, while the law won't come into force until one day after it is published in the official gazette.
Private equity groups are expected to be among the main beneficiaries of the new law, as they can now use the capital markets to exit existing investments — like in most mature jurisdictions — instead of relying on trade sales to other investors to offload holdings.
"Giving the companies in the
"Private equity will become more mainstream when founders don't need to cede management control upon listing and are not required to raise 55 percent of the capital," he added.
Changes to laws governing IPOs in the
The provision on sell downs was one expected to be included within the country's companies law that covers the operations of firms.
Also included is a provision reducing the minimum free float required in IPOs to 30 per cent from the current 55 per cent on
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