SC Introduces New Framework for Listing of Mineral, Oil and Gas Corporations

19 January 2017 | Kuala Lumpur

Securities Commission Malaysia (SC) today introduced a new framework for listing of Mineral, Oil and Gas (MOG) corporations that will expand opportunities for such businesses to enter the equity market.

The framework will take effect on 20 March 2017 through the amendments to the Equity Guidelines, Prospectus Guidelines and Asset Valuation Guidelines.

The amended guidelines aim to provide clarity on the types of MOG businesses considered suitable and eligible for listing on Main Market of Bursa Malaysia, particularly for those engaged in early stage exploration and extraction of MOG resources. These include additional requirements for MOG corporations to be eligible for listing on the local bourse, such as demonstrating adequate MOG assets under their portfolio.

The new framework covers listings of MOG corporations either directly through initial public offering, indirectly through acquisition by listed companies, or qualifying acquisition by Special Purpose Acquisition Companies.

SC developed the framework following a thorough review, jurisdictional benchmarking, engagements with investors and industry experts, as well as a public consultation process.

These new regulatory measures would enable investors to make better informed decisions on the merits and risks of investing in MOG businesses, which is in line with SC’s mandate of ensuring a fair and orderly capital market. The new guidelines would also provide additional fundraising avenues for MOG corporations and in turn broaden investment options for investors.

The revised Equity Guidelines, Prospectus Guidelines and Asset Valuation Guidelines are available on the SC’s website www.sc.com.my.

SECURITIES COMMISSION MALAYSIA