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 such as the Tokyo Stock Exchange.
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 Japanese Financial Services Agency (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
- Alternative public offering
- PIPE deal
References
- Public Offering Without Listing - "POWL" in Japan retrieved 2009-04-10^
- Alan L. Beller, Tsunemasa Terai, Richard M. Levine. Looks Can Be Deceiving: A Comparison of Initial Public Offering Procedures under Japanese and U.S. Securities Laws Law and Contemporary Problems, 1992^
- POWL - Catering to Japanese Tastes