All companies seeking listing on Bursa Malaysia will require SC’s approval, under Section 212 of the Capital Market and Services Act 2007. In addition, a prospectus issued in conjunction with the listing, must be registered with the SC. For Main Market applications, the SC will generally complete its assessment and register the IPO prospectus within 60 working days from the date of a full and complete application complete with registrable prospectus; 40 working days for companies with large capitalisation.
For ACE Market listing application, SC’s approval under Section 212 is not required. However, the IPO prospectus is subject to SC’s review, a process that will take 40 working days from submission of the registrable prospectus.
For Main Market applications, the SC reviews the IPO proposal to ensure compliance with the Equity Guidelines and that the applicant’s directors and substantial shareholders are free from any adverse records and corporate governance issues. The IPO prospectus is also reviewed for adequacy of disclosures and compliance with the Prospectus Guidelines – Equity and Debt. The SC also checks that the prospectus is disclosed in a full and true manner for investors to make informed investment decisions. For ACE Market applications, only the prospectus review is undertaken.
For submissions that may involve properties, the SC reviews the adequacy of disclosures in valuation certificates and on property assets in prospectus. It also reviews the reasonableness of the valuations of property assets and checks for compliance with the Asset Valuation Guidelines and other applicable valuation standards.
The SC also analyses the effect of the IPO proposal on the equity structure of the applicant, in accordance with the Bumiputera equity requirement.
Throughout the assessment of an IPO application, there is a vigorous internal challenge process in place to ensure thoroughness, consistency, transparency and accountability within the process. There is also much communication between the principal advisers and the SC, right from the pre-submission consultations stage through to the post-decision meetings.