Public offering without listing

A public offering without listing, often called a POWL deal or a POWL, is a form of public equity offering by non-Japanese firms in the Japanese market, without the previously required simultaneous listing on a local exchange (e.g. TSE).

History

Prior to 1989, non-Japanese firms that wanted to sell equity into the Japanese market via public offering were required to list on a local Japanese stock exchange.[1] Changes in regulations[2] introduced in 1989 allowed this form of a public offering by foreign companies published, audited financial statements and with stock that is (or will be) listed on a foreign stock exchange which satisfies the requirements of the FSA.

Notable POWL issuance

Equity offerings via POWL have been a common part of Asia regional public offerings since the early 1990s, with Japanese investors often taking more than 20% of the offering through this format.[3] ICBC and Bank of China (Hong Kong) used this format to allow their domestic public offerings to spread into Japan.[4]

See also

References
  1. "Public Offering Without Listing - "POWL" in Japan" (PDF). Retrieved 2009-04-10.
  2. Beller, Alan L.; Terai, Tsunemasa; Levine, Richard M. (1992). "Looks Can Be Deceiving: A Comparison of Initial Public Offering Procedures under Japanese and U.S. Securities Laws". Law and Contemporary Problems. 55 (4): 77–118. doi:10.2307/1192106. ISSN 0023-9186. JSTOR 1192106.
  3. "POWL - Catering to Japanese Tastes". Retrieved 2009-04-10.
  4. "Bank of China (Hong Kong) - Awards". Retrieved 2009-04-10.
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