Public offerings in Cameroon enable companies to raise money and finance their projects, notably by issuing shares or bonds which may then be acquired by either local or foreign investors. Companies which make public offerings are defined as those which, in order to obtain funds, seek investment from the public. The establishment and operation of such companies is governed by specific rules aimed at protecting investors.
The Uniform Act has therefore presumed to be public offering any of the three situations:
- The listing of securities on the official list of a stock exchange in a member state;
- The public offering of securities through credit institutions or brokers, or through canvassing and advertising; or
- The placing of securities with over 100 persons.
Companies authorized to make public offering
Only SAs are allowed to issue negotiable securities and offer them to the public. The Uniform At specifies that SAs making public offerings must have a registered capital of not less than 100 million FCFA and must be administered by a board of directors.
Any company with its registered office in any one of the member states may issue securities in any other member states, offering them to residents in those other countries.
Types of securities and public offerings
The Uniform Act provides that securities may be offered in the context either of a new issue or of a sale of existing securities.
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