Details on announcement made by Acting Prime Minister and Minister of Finance on:
Pursuant to the announcement by the Acting Prime Minister and Minister of Finance, YB Dato’ Seri Abdullah Haji Ahmad Badawi, on the measures to enhance the capital market today, the Securities Commission (SC) wishes to provide further details on the following:
Listing of Large Companies
Companies can apply to seek listing on the Kuala Lumpur Stock Exchange (KLSE) under the new market capitalisation requirement based on the following criteria:
Moratorium on Disposal of Securities
Only the promoters of the following categories of companies will be subjected to the moratorium requirement whereby they will not be allowed to sell, transfer or assign their shareholdings amounting to 45% of the issued and paid-up capital for one year from the date of admission of the company to KLSE:-
Thereafter, the shares are not subjected to any moratorium requirement.
For promoters of infrastructure project companies (IPCs) seeking listing, the same moratorium requirement would apply except that 50% of the moratorium shares will be released per annum on a straight-line basis, upon the infrastructure project achieving one full financial year of audited operating revenues.
With regards to acquisitions of assets resulting in reverse take-overs of listed companies, a moratorium will be imposed on 50% of the consideration securities to be received by the vendors of the assets to be injected, whereby the vendors will not be allowed to sell, transfer or assign the securities for one year from the date the securities are listed on KLSE. Thereafter, the securities are not subjected to any moratorium requirement.
This new treatment of moratorium would apply automatically to proposals which have been approved by the SC since October 2002.
Promoters who are currently holding moratorium securities based on the existing requirement imposed prior to October 2002 can opt for the new moratorium requirement provided they apply to the SC with appropriate justifications.