16 May 22 The CNV creates the Special Regime for Dual Listing of Foreign Companies
By Agustín Cerolini and Martín Chindamo
By means of the General Resolution No. 930/2022 (the «Resolution»), the Argentine Securities Exchange Commission (the «CNV», by its acronym in Spanish) approved the «Special Regime for Dual Listing of Foreign Companies».
The purpose of this regime is to promote the listing in the country of companies incorporated abroad and authorized to make public offering of its shares by regulators recognized by the CNV, and with listing and/or trading of such shares in authorized markets abroad.
Pursuant to the above mentioned Resolution, companies incorporated abroad may benefit from this new regime for the offering of shares comprising their current capital stock or through the offering of new shares to be issued and that are listed in one or more foreign markets corresponding to countries with whose authorities cooperation agreements contemplating this aspect have been entered into, or whose regulations the CNV considers, reasonably protect local investors and ensure an adequate information regime.
The entities requesting to be covered by this regime must comply with the following requirements:
(i) Establish domicile in the country under the terms of Section 118 of Law No. 19,550, as amended.
(ii) Establish an electronic domicile in the country.
(iii) Prove that the shares trade and/or are listed in one or more foreign markets.
(iv) Maintain in force the conditions to make public offering in accordance with the legislation of the foreign market(s) where the shares trade and are listed.