What type of letter must a sponsor submit along with the draft prospectus or listing particulars?

The requirement for a sponsor to submit a working capital letter alongside the draft prospectus or listing particulars is essential in the context of regulatory compliance during the initial public offer (IPO) process or listing of a company. A working capital letter provides an assurance that the company has sufficient working capital to meet its needs for at least the next 12 months from the date of the prospectus.

This letter typically confirms that the company's financial resources are adequate to cover operational costs and obligations, which is critical for investors evaluating the company's viability and stability. By requiring this letter, regulators aim to protect investors by ensuring that the company has the necessary financial foundation to sustain itself after going public. It serves to instill confidence that the company will not face immediate financial difficulties that could jeopardize its operations or investments made by shareholders.

In contrast, the other options do not fulfill the specific requirement as effectively. A compliance letter may verify adherence to various regulations but does not specifically address financial sufficiency. Financial statements provide past performance data but do not assess current working capital adequacies. An investor report often includes various summarizations about the company or sector but is not specifically tied to immediate financial obligations in the same way the working capital letter is.