In reviewing the requirements for listing, a decision has been taken to increase the minimum issued and paid-up capital requirement for companies seeking listing on the Second Board from the present RM10.0 million to RM40.0 million. The revision is intended to increase the free float and liquidity of companies listed on the Second Board.
There are currently 47 applications seeking listing on the Second Board which are outstanding with the SC. Of the total, 29 applicant companies have requested for deferment of consideration of their applications. In view of the revision in the minimum share-capital requirement, the SC wishes to advise on the treatment of the outstanding applications for listing on the Second Board, as follows :-
- For the 29 applicant companies which have requested for deferment of consideration of their applications, such applications will be returned to their corporate advisers. Re-submission of the applications should only be made upon completion of the review of the overall listing requirements by the SC whereby the applications should be in compliance with the new listing requirements; and
- For the remaining 18 applicant companies, their applications will be kept in view until completion of the review of the overall listing requirements by the SC. Applications which meet the new listing requirements will be processed while those which do not will be returned to their corporate advisers.
The SC will only accept fresh applications for listing on the Second Board on completion of the review exercise by the SC and such applications should be in compliance with the new listing requirements.
Existing companies listed on the Second Board are also expected to increase their issued and paid-up capital to at least RM40.0 million. At this time, only 28, or 9.9%, of the 283 companies listed on the Second Board have an issued and paid-up capital of RM40.0 million or more. A grace period would, therefore, be given for Second Board companies to meet this new requirement. The grace period will be appropriately determined and announced upon completion of the review of the listing requirements. The existing Second Board companies which do not have a minimum issued and paid-up capital of RM40.0 million should, nevertheless, take the necessary steps to enlarge their share-capital size to comply with the new requirement.
Companies which have been approved by the SC for listing on the Second Board but whose actual listings are still pending would be allowed to proceed with their listing exercises based on the capital size already approved. They would, however, have to comply with the new minimum capital size requirement subsequent to their listing but within the same grace period applicable to existing listed Second Board companies.
