SC, Bursa Malaysia pledge speedier IPO approvals for Main, ACE Markets
The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd have jointly committed to an expedited threemonth approval period for initial public offerings (IPO) on both the Main Market and the ACE Market.
In a joint statement, the regulators said the commitment is applicable to new IPO applications received from March 1 this year.
They said the commitment to a prompt decision on regulatory approval within three months would be premised on the principal advisers/sponsors satisfactorily addressing the regulators’ queries and comments on IPO applications within five market days.
This will augment the regulators’ current practice since 2021 of issuing queries and comments within 10 market days following a complete IPO application, as well as issuing subsequent queries and comments within five market days to each response round.
SC chairman Datuk Seri Dr Awang Adek Hussin said the Malaysian equity capital market has remained a cornerstone of funding for companies, with IPOs raising RM3.6 billion in 2023.
“We believe our approval timeframe is able to cater for the dynamic business needs of companies looking to raise funds in the capital market, as part of our ongoing efforts to remain competitive and relevant for both local and international investors.
“This collaborative effort underscores our commitment to fostering a conducive environment for issuers, facilitating their access to capital markets with greater certainty and efficiency,” he said.
Meanwhile, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the more competitive time-to-market would enhance the exchange’s attractiveness to companies seeking to list in Malaysia.
“We aim to provide a holistic and customer-friendly facilitation by regulator(s) and principal advisers/ sponsors, to better support companies who intend to raise capital through IPOs and elevate their status as public-listed companies.
“Our equities market is ready to support the cycle of fundraising and investing to grow businesses,” he said.
The SC and Bursa Malaysia said they would continue to maintain rigour in the assessment, without compromising investors’ protection and public interests.
To leverage a stronger collaboration between the regulators and industry players to offer a clearer timeline for listing for qualified IPO applicants, the regulators look forward to attracting quality companies to list, particularly those in sectors that support national growth policies, blueprints, and roadmaps, they said.