Court ruling a landmark decision on initial public offerings pink forms

PUTRAJAYA: A landmark decision that pink forms in initial public offerings (IPOs) do not constitute a guarantee of shares remains unchallenged after the Federal Court here denied three individuals leave to appeal against the decision.

The five-member panel ruled in favour of Malaysian Bulk Carriers Bhd (MBC), agreeing with MBC counsel Leonard Yeoh's argument that pink forms, just like white forms, were subject to the terms of the form and prospectus, and hence, were merely an invitation to treat and not an offer.