The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad have jointly announced a commitment to expedite the approval process for initial public offerings (IPOs) on both the Main Market and the ACE Market, aiming for a three-month approval period.
Effective from March 1, 2024, this commitment requires Principal Advisers/Sponsors to satisfactorily address regulatory queries and comments on IPO applications within five market days. The initiative builds upon the regulators’ existing practice of issuing queries and comments within ten market days following a complete IPO application.
SC Chairman, Dato’ Seri Dr. Awang Adek Hussin, highlighted the Malaysian equity capital market’s significance, with IPOs raising RM3.6 billion in 2023. He emphasised the need for a competitive and efficient approval timeframe to meet dynamic business needs.
Maintaining a rigorous assessment process, the regulators aim to provide a clearer timeline for listing to qualified IPO applicants, particularly those in sectors supporting national growth policies.
Bursa Malaysia, Chief Executive Officer, Datuk Muhamad Umar Swift, , expressed optimism that the shorter time-to-market would enhance the Exchange’s appeal to potential listing companies, promoting a conducive environment for issuers.
The Malaysian Investment Banking Association (MIBA) underscored the importance of seamless collaboration between regulators and advisers to ensure a smooth listing process, upholding standards of due diligence, corporate governance, and compliance.
SC and Bursa Malaysia emphasised the importance of adhering to guidelines and requirements, ensuring quality disclosures, corporate governance, and timely responses to regulator queries. They also announced plans to develop further measures, including training modules, to support market professionals towards achieving smoother IPO journeys.
