The Securities Commission Malaysia and Bursa Malaysia Securities Berhad have announced that effective 1 January 2022, the Exchange will be the sole approving authority for ACE Market Initial Public Offerings.
Under the new regulatory framework, the Exchange will become a one-stop centre for all ACE Market IPO approvals including the registration of abridged prospectus for the purpose of secondary fundraising activities via rights issues by corporations listed on the ACE Market.
The streamlining and consolidation of the ACE’s listing and approval process was announced by the SC in July 2021. During the transition period, the Commission will continue to register ACE Market prospectuses that have been submitted to the SC prior to 1 January 2022. “The streamlining of the listing process and regulatory framework for the ACE Market is part of the SC’s initiatives under the five-year Capital Market Masterplan to enhance fundraising efficiency for Malaysian corporations at various stages of growth,” said Datuk Syed Zaid Albar, SC Chairman. He added that corporations seeking listing would benefit from a seamless listing process while upholding the same level of investor protection.
“These new IPO rules will improve the efficiency and efficacy of the IPO process, providing a more facilitative regime for companies who are seeking to list on the Exchange.” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
“The ACE Market facilitates eligible corporations, especially the small and medium-sized corporations to meet their funding needs through IPOs in an efficient, sustainable and cost-effective manner. The review also entailed other enhancements to to strengthen investor protection. Under the improved sponsorship regime, greater emphasis will be placed on the duty of the Sponsor and its key officers to ensure the validity, accuracy, and completeness of submissions made to the Exchange, as well as to disclosures to the market.
Apart from the ACE Market Listing Requirements, the Exchange also enhanced the Principal Adviser framework under the Main Market Listing Requirements, in line with the SC’s recognised principal adviser framework, and strengthened the accountability of such advisers and its key officers. In particular, significant proposals such as a Major Disposal will now be subjected to greater supervision and oversight of the recognised principal adviser and its officers.
