SEC sits today on book building method
FE Report | Monday, 21 March 2011
FE Report
The securities regulator sits today (Monday) with the stakeholders of the stock market to discuss the revised guideline on book building method, officials said. Recently, the Securities and Exchange Commission (SEC) formulated a revised guideline on book building method by fixing the maximum allowable price-earning (P/E) ratio at 15, which will be the average P/E of three years, for a company willing to go public. Under the guideline, an intending company to go public under book building method must fix its indicative price by taking into account it's earning per share (EPS) and net asset value (NAV). In that case, before the debut trading a company's P/E ratio cannot exceed 15. At the same time, the indicative price Continued to page 14
The securities regulator sits today (Monday) with the stakeholders of the stock market to discuss the revised guideline on book building method, officials said. Recently, the Securities and Exchange Commission (SEC) formulated a revised guideline on book building method by fixing the maximum allowable price-earning (P/E) ratio at 15, which will be the average P/E of three years, for a company willing to go public. Under the guideline, an intending company to go public under book building method must fix its indicative price by taking into account it's earning per share (EPS) and net asset value (NAV). In that case, before the debut trading a company's P/E ratio cannot exceed 15. At the same time, the indicative price Continued to page 14