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SEC advises investors to study prospectus carefully before making investment decisions



Friday 3 November 2017 | No. 109 / 2017



Bangkok, 3 November 2017 ? The SEC emphasizes the importance of information disclosure in the registration statement and prospectus so that investors will be able to access complete information before making decisions to invest in initial public offerings (IPO). 

SEC Deputy Secretary-General Prakid Punyashthiti said: ?Investors should study the information of any  financial instument of their interest before deciding to invest. In case of IPOs, investors can access important information in the prospectus provided by the issuer or inquire securities companies. After subscription, investors should continue to monitor and update news and information of the invested shares through the Electronic Information System of the Stock Exchange, the issuer's annual report or newspapers. Shareholders should also attend the shareholders? meetings and exercise their voting right to protect their own interest.?

The following information provided in the prospectus shuould be taken into serious consideraton, namely (1) fact sheet of the offering, business overview, financial condition and operating results, (2) risk factors to get an idea of what kind of potential risks that may affect the issuer, (3) related party transactions showing the issuer's relation with other persons who may have a conflict of interest, measures to prevent such conflicts and oversight of improper transfer of benefits, and (4) the management's discussion and analysis (MD&A), which gives an overview of changes to the company's finanical condition and operating results. 

?The SEC's primary duty in considering an IPO filing is to ensure that the issuer has an organizational structure that complies with good corporate governance principles, an internal control system, and disclosure of sufficient information. The issuer's ability to operate successfully in the long run is a business matter that investors should study further along with relevant significant information to support their decision-making. Studying research papers on the target securities and consulting financial experts licensed to give professional advice is also helpful,? added Mr. Prakit.    

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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 109 / 2017 Friday 3 November 2017
SEC advises investors to study prospectus carefully before making investment decisions


Bangkok, 3 November 2017 ? The SEC emphasizes the importance of information disclosure in the registration statement and prospectus so that investors will be able to access complete information before making decisions to invest in initial public offerings (IPO). 

SEC Deputy Secretary-General Prakid Punyashthiti said: ?Investors should study the information of any  financial instument of their interest before deciding to invest. In case of IPOs, investors can access important information in the prospectus provided by the issuer or inquire securities companies. After subscription, investors should continue to monitor and update news and information of the invested shares through the Electronic Information System of the Stock Exchange, the issuer's annual report or newspapers. Shareholders should also attend the shareholders? meetings and exercise their voting right to protect their own interest.?

The following information provided in the prospectus shuould be taken into serious consideraton, namely (1) fact sheet of the offering, business overview, financial condition and operating results, (2) risk factors to get an idea of what kind of potential risks that may affect the issuer, (3) related party transactions showing the issuer's relation with other persons who may have a conflict of interest, measures to prevent such conflicts and oversight of improper transfer of benefits, and (4) the management's discussion and analysis (MD&A), which gives an overview of changes to the company's finanical condition and operating results. 

?The SEC's primary duty in considering an IPO filing is to ensure that the issuer has an organizational structure that complies with good corporate governance principles, an internal control system, and disclosure of sufficient information. The issuer's ability to operate successfully in the long run is a business matter that investors should study further along with relevant significant information to support their decision-making. Studying research papers on the target securities and consulting financial experts licensed to give professional advice is also helpful,? added Mr. Prakit.    

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