27/02/2024 (Malaysia) - The Securities Commission Malaysia (SC) and Bursa Malaysia have jointly announced a commitment to expedite the approval process for Initial Public Offerings (IPOs) on the Main Market and ACE Market, aiming to reduce the period to three months. This initiative, effective from March 1, 2024, is designed to streamline the IPO application process, ensuring quicker market access for companies.
In their statement, the regulatory bodies highlighted that the commitment is contingent on lead advisers and sponsors responding satisfactorily to regulatory inquiries and comments within five market days. This builds on existing practices established in 2021, where regulators issue inquiries and comments within ten market days following a complete IPO application, with subsequent rounds of feedback addressed within five market days.
The regulators emphasized maintaining stringent evaluation standards without compromising investor protection and public interest. This approach aims to provide clearer timelines for IPO applicants, attracting high-quality companies, especially those supporting national growth policies and strategic plans.
Datuk Seri Dr. Awang Adek Hussin, SC Chairman, remarked on the equity capital market's role in financing companies, with IPOs raising RM3.6 billion in 2023. He believes that the reduced approval period will meet the dynamic needs of businesses seeking capital market funds, reflecting ongoing efforts to remain competitive and relevant for both local and international investors.
Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, expressed that a more competitive time to market would enhance the exchange's appeal to prospective listings. He outlined the goal of providing comprehensive and customer-friendly support through regulatory and advisory services, facilitating easier capital market access for companies.
The Malaysian Investment Banking Association (MIBA) acknowledged the importance of smooth collaboration between regulators and advisers for efficient listing processes. MIBA Chairman, Lee Jim Leng, highlighted the collaboration's role in upholding due diligence, corporate governance, and compliance standards, contributing to a faster market entry for IPO issuers and enhancing the capital market's credibility and transparency.
SC and Bursa Malaysia stressed the necessity for advisers and professionals to maintain high due diligence standards, ensuring high-quality IPO applications that adhere to guidelines, disclosure quality, and corporate governance standards, along with timely and satisfactory responses to regulatory inquiries.
Future measures, including training modules, will be developed to support market professionals towards achieving the shared goal of a smoother IPO journey.