Bursa will consider allowing lower public spread

KUALA LUMPUR: Bursa Malaysia Bhd will consider applications for a lower public security holding spread than the current minimum requirement of 25 per cent based on certain criteria.

The Main Market and ACE Market Listing Requirements have been amended to reflect the policy considerations for the acceptance of a lower public spread, the exchange said in a statement.

Under the public spread amendments that will take effect from March 1, Bursa Malaysia will make its consideration based on a balanced assessment comprising both quantitative and qualitative criteria.

In terms of the size and level of liquidity of the applicant or listed issuer, the exchange said for companies with a market capitalisation of RM3 billion or more, the acceptable minimum public spread is 15 per cent.

For companies with a market capitalisation of at least RM1 billion but below RM3 billion, the acceptable minimum is 20 per cent.

Other criteria are the appropriateness and rationale of the application, including if there is sufficient liquidity, orderliness of trading of the securities, good corporate governance conduct and compliance records of the listed issuer/applicant and its directors, as well as reasonable justification necessitating the lower public spread.

“The public spread amendments will promote greater transparency, as well as regulatory clarity and certainty on the policy considerations by the exchange in accepting a lower public spread.

“Notwithstanding the above, eligible listed issuers and those granted with a lower public spread are strongly encouraged to maintain at least 25 per cent public spread to promote wider participation of investors and a more liquid market,” Bursa Malaysia added.