SC shortens time frame for big cap listings

The Securities Commission (SC) has shortened its time frame for the review and consideration of initial public offering (IPO) applications of companies with large capitalisation.

The enhanced time frame is among the regulator’s recent endeavours to improve efficiency, effectiveness and transparency, which included its release last month of performance data on corporate proposals reviewed for the first half of 2006.

“The revised time frame is part of the SC’s continuous efforts to improve the delivery of regulatory services to the market. With faster review by the SC there will be quicker time to market and more certainty on the outcome of a proposal,” said SC Chairman Dato’ Zarinah Anwar.

The SC will now decide within a month from submission date on proposed IPOs by companies with market capitalisation of at least RM500 million. The new time frame is a significant reduction from the current three month timeline taken to review listing proposals in general.

“There is a need to attract large, quality companies to the local bourse. With the shorter time frame, “big-cap” companies which meet the listing criteria can be listed faster on Bursa Malaysia. This new time frame would also apply to foreign companies applying to list in Malaysia following the release of SC’s foreign listing guidelines last June,” said Dato’ Zarinah.

The SC is also reducing the time frame for securities issued by listed companies on a rights basis. Such proposals will now be decided within five working days, as compared to the current 21 working days. The new time frame would apply to stand-alone rights proposals which do not involve valuation of assets, do not result in significant changes in business direction of the issuer and do not involve related-party transactions.

The SC assures that applications which fully comply with all listing requirements, are complete with all the information necessary for SC to make its decision and do not display corporate governance concerns will be decided within the new time frame.

Advisers and professionals are expected to play their role in ensuring the highest standards of due diligence in submissions to the SC so that these efficiencies could later be extended to other applications.


25 August 2006