Bursa Malaysia Berhad is giving a 12 months extension of the temporary relief measures for the increased general mandate of 20% for new issue of securities by way of private placement and the general mandate of 50% based on a pro-rata entitlement for new issue of securities by way of a rights issue which would have expired on 31 December 2021.
This extension is in line with the Exchange’s commitment to assist listed issuers to address their funding needs and working capital requirements by easing compliance and facilitate secondary fundraising.
“We acknowledge the unprecedented lingering impact of COVID-19 on our listed issuers,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “It is imperative for listed issuers to be able to raise funds through the secondary market in an expedient, efficient and cost-effective manner during these challenging times.”
The 20% General Mandate previously announced will be extended for another 12 months for listed issuers that have not raised any funds using the 20% Mandate in 2020 or 2021. Such listed issuers will have up to end of 2022 to issue new securities under the 20% General Mandate subject to the same prescribed conditions.
As for the Pro-Rata 50% General Mandate it will also be extended for another 12 months until end 2022. An eligible listed issuer may issue rights securities on a pro-rata basis using this mandate, subject to compliance with the same conditions as imposed earlier. Additionally, the Pro-Rata 50% General Mandate can now be utilised to issue a combination of ordinary shares/units and convertible equity securities.
