The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad have jointly committed to an accelerated three-month approval period for initial public offerings (IPOs) on both the Main Market and the ACE Market.
The duo said in a statement on Monday that the commitment applies to new IPO applications received from March 1, 2024.
The commitment to an expeditious decision on regulatory approval within three months requires that principal advisors/sponsors satisfactorily respond to regulators' questions and comments on IPO applications within five market days.
This will expand regulators' practice, established in 2021, of issuing questions and comments within ten market days of a full IPO application, and issuing additional questions and comments within five market days of each round of responses.
According to the statement, regulators will continue to remain rigorous in assessment without compromising investor protection and public interests.
Aiming to promote greater collaboration between regulators and industry players to provide qualified IPO applicants with a clearer listing timeline, regulators said they look forward to attracting high-quality companies for listing, especially those from Sectors where this is the case
Support national growth policies, blueprints and roadmaps.
“The Malaysian venture capital market continues to be a cornerstone of corporate financing. IPOs raised MYR3.6 billion (US$750,000) in 2023.
“We believe our approval period is able to meet the dynamic business needs of companies seeking to raise funds in the capital market, as part of our ongoing efforts to remain competitive and relevant to local and international investors,” the SC said -Chairwoman Dr. said Awang Adek Hussin.
According to him, this joint effort underlines the regulator's commitment to creating a favorable environment for issuers and facilitating their access to capital markets with greater security and efficiency.
Bursa Malaysia chief executive Muhamad Umar Swift said the more competitive time to market will increase the attractiveness of the exchange for companies seeking to list in Malaysia.
“Our aim is to provide holistic and client-friendly facilitation by regulators and principal advisors/sponsors to better support companies intending to raise capital through IPOs and enhance their exchange status.”
listed companies,
“Our stock market is ready to support the fundraising and investment cycle to grow companies,” he added.
Meanwhile, the Malaysian Investment Banking Association (MIBA) said it recognized the critical importance of seamless collaboration between regulators and advisors to ensure a smooth listing process.
“By working hand in hand, we can maintain the highest standards of due diligence, corporate governance and compliance, ultimately enabling faster time to market
for IPO issuers,
“This not only benefits companies seeking to raise capital, but also increases the overall credibility and transparency of the capital market,” said MIBA Chairman Lee Jim Leng.
The SC and Bursa Malaysia said advisors and professionals should adhere to due diligence standards to facilitate the highest quality IPO applications by adhering to guidelines and
requirements, ensuring high-quality disclosures, high standards of corporate governance and timely and satisfactory responses to inquiries and comments from regulators.
According to the duo, further measures, including training modules, are being developed to help market professionals achieve the shared goal of a smoother transition to IPOs.
SC Malaysia introduces streamlined listing transfer to promote more exit opportunities
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