SC, Bursa Malaysia commit to three-month approval period for IPOs on Main, ACE Markets

KUALA LUMPUR: The Securities Commission and Bursa Malaysia Bhd have jointly committed to an expedited three-month approval period for initial public offerings (IPO) on both the Main Market and ACE Market.

In a joint statement, the stock exchange regulators said the commitment is applicable to new IPO applications received from March 1, 2024.

It said the commitment for a prompt decision on regulatory approval within three months will be premised on the principal advisers/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, as well as issuing subsequent queries and comments within five market days to each response round.

“The Malaysian equity capital market has remained a cornerstone of funding for companies, with IPOs raising RM3.6bil 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,” said SC chairman Datuk Seri Awang Adek.

Bursa Malaysia CEO Datuk Muhamad Umar Swift added that 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.

“Our equities market is ready to support the cycle of fundraising and investing, to grow businesses.”