Corporate governance experts say that IPOs where the number of shares offered for sale is higher require more transparency and stronger disclosures.
When promoters and insiders are the sole beneficiaries of IPO proceeds, it is the responsibility of regulators and investors to see whether disclosures adequately explain the valuation, timing and rationale. In the case of CMR Green Technologies, the combination of insider buying of shares at low prices and a full OFS structure has heightened governance discussions.
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