KUALA LUMPUR: The Securities Commission Malaysia (SC) and Bursa Malaysia have jointly committed to an expedited three-month approval period for initial public offerings (IPOs) on the Main Market and the ACE Market.
The commitment applies to new IPO applications received as of March 1, 2024.
In a joint statement, both agencies said the commitment to a prompt decision on regulatory approval within three months would be premised on the principal advisers and 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 ten market days following a complete IPO application and issuing subsequent queries and comments within five market days of each response round.
The regulators will continue to maintain rigour in the assessment without compromising investors’ protection and public interests.
To leverage a more vital collaboration between the regulators and the industry players to offer a more precise timeline for listing qualified IPO applicants, the regulators look forward to attracting quality companies to list, particularly those in sectors supporting national growth policies, blueprints, and roadmaps.
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 can 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 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,” Dr Awang said.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the more competitive time-to-market will enhance the exchange’s attractiveness to companies seeking to list in Malaysia.
“We aim to provide a holistic and customer-friendly facilitation by regulators and principal advisers and sponsors to support better companies that 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 Malaysian Investment Banking Association (MIBA) recognise the critical importance of seamless collaboration between regulators and advisers to ensure a smooth listing process.
“By working hand in hand, we can uphold the highest standards of due diligence, corporate governance, and compliance, ultimately facilitating a faster time-to-market for IPO issuers,” MIBA chairman Lee Jim Leng said.
“This will not only benefit businesses seeking to raise capital but also enhance the overall credibility and transparency of the capital market,” she added.
The SC and Bursa Malaysia said advisers and professionals should uphold due diligence standards to enable the highest quality IPO applications by adhering to guidelines and requirements, ensuring quality disclosures, high standards of corporate governance, as well as timely and satisfactory responses to regulator queries and comments.
Further measures, including training modules, will be developed to support market professionals in meeting the unified objective of a smoother journey to IPOs.
