The Securities Commission Malaysia (SC) and Bursa Malaysia have announced a new initiative to expedite the approval process for initial public offerings (IPOs) on both the Main Market and the ACE Market, aiming for a three-month turnaround. This streamlined approach will start with IPO applications submitted from 1 March 2024.
Under this initiative, IPO applications must satisfactorily address any regulatory queries and comments within five market days to qualify for the expedited approval process.
This builds on existing practices introduced in 2021, where regulators committed to reviewing complete IPO applications by issuing queries and providing feedback within ten market days, followed by a swift five-day response period for any subsequent queries.
The SC and Bursa Malaysia emphasize that the expedited process will not compromise the thoroughness of assessments or investor protections. The move seeks to enhance collaboration between regulators and the investment community, providing clearer timelines for IPOs and attracting quality listings, especially in sectors vital to national development.
The Malaysian Investment Banking Association (MIBA) welcomed the initiative, highlighting the importance of effective cooperation between regulatory bodies and advisers to facilitate the listing process.
Advisers and professionals are urged to maintain high standards of due diligence and corporate governance to ensure the success of IPO applications.
In addition to the streamlined approval process, the SC and Bursa Malaysia plan to introduce training programmes to support market professionals in achieving a smoother IPO journey.
The SC Chairman Dato’ 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.”
Datuk Muhamad Umar Swift, Bursa Malaysia Chief Executive Officer 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 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.”
