What Is SEC Form F-3?
SEC Form F-3 is a form used to register certain securities by foreign private issuers that meet certain criteria according to the Securities and Exchange Commission (SEC). Form F-3 is also known as the "Registration Statement" under the Securities Act of 1933.
Foreign private issuers that have a global market capitalization greater than $75 million and that have reported under the Securities Act of 1934 for a minimum of one year are required to file Form F-3. It is also used by eligible foreign private issuers to register offerings of non-convertible investment-grade securities.
Understanding SEC Form F-3
Form F-3 helps the SEC achieve the objectives of the Securities Act of 1933 by requiring that investors have access to important information about any securities being offered and thus helps to prohibit fraud in the sale of the offered securities. Often referred to as the "truth in securities" law, the Securities Act was enacted by the U.S. Congress after the stock market crash of 1929. Form F-3 and other forms are filed in order to provide essential facts about a company's securities upon their registration.
Requirements for Registrants
Under the Securities Act, a company must meet certain conditions in order to use Form F-3 for registration. Either registrants must have a class of securities registered pursuant to Section 12(g) of the Securities Act, also called the Exchange Act, or they must be required to file reports in accordance with Section 15(d), and they must have filed at least one annual report using Form 20-F, Form 10-K, or Form 40-F (as required by the Exchange Act).
Registrants cannot have failed to pay any dividends or any sinking fund installments on preferred stock. They also cannot have defaulted on any installments for borrowed money or on any long-term lease rental.
If a registrant is a majority-owned subsidiary, security offerings may also be registered on Form F-3 (assuming that the subsidiary meets the necessary series of eligibility requirements).
Security offerings made by registrants that meet certain transactional conditions may also use this form for registration. This includes primary offerings of securities for cash by a registrant, (or on behalf of a registrant) if the aggregate market value worldwide of common equity is the equivalent of $75 million or more.
Primary offerings of non-convertible securities may also be registered as long as the registrant has issued at least $1 billion in non-convertible securities within 60 days of filing the registration statement (not including common equity over the three years prior), or at least $750 million of outstanding non-convertible securities. It also applies to a wholly-owned subsidiary or a majority-owned operating partnership of a real estate investment trust that qualifies as a well-known seasoned issuer.