KUALA LUMPUR: Regulators of the capital and stock markets have pledged to shorten approval time for initial public offerings (IPOs) on both the Main and the ACE Markets to three months from March 1.
The Securities Commission and Bursa Malaysia Securities Bhd in a joint statelement today said the expedited approval time will be dependent on principal advisers/sponsors satisfactorily addressing the regulators' queries and comments on IPO applications within five market days.
The regulators said it has been a practice since 2021 for reulators to issue queries and comments within ten market days following a complete IPO application.
The commitment looks to forge stronger collaboration between the regulators and industry players to offer a clearer timeline to listing for qualified IPO applicants.
The regulators look forward to attract quality companies to list, particularly those in sectors that support national growth policies, blueprints, and roadmaps.
SC chairman Datuk Seri Dr Awang Adek Hussin highlighted that the Malaysian equity capital market continues to be a vital source of funding for companies, with IPOs raising RM3.6 billion in 2023.
"We believe our approval timeframe is able to cater for the dynamic business needs of companies looking to raise funds in the capital market, as part of our ongoing efforts to remain competitive and relevant for both local and international investors," he said.
Awang Adek also emphasised that the joint effort reflects a dedication to cultivating a favourable environment for issuers, streamlining their access to capital markets with increased assurance and effectiveness.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said that the increased competitiveness in time-to-market will make the exchange more appealing to companies looking to list in Malaysia.
"We aim to provide a holistic and customer-friendly facilitation by regulator(s) and principal advisers/ sponsors, to better support companies who intend to raise capital through IPOs and elevate their status as public listed companies. "Our equities market is ready to support the cycle of fundraising and investing, to grow businesses," said Umar.
The Malaysian Investment Banking Association (MIBA) said it recognised the critical importance of seamless collaboration between regulators and advisers to ensure a smooth listing process.
"By working hand in hand, we can uphold the highest standards of due diligence, corporate governance, and compliance, ultimately facilitating a faster time-to-market for IPO issuers," MIBA chairman Lee Jim Leng said.
The SC and Bursa Malaysia stressed the significance of advisers and professionals maintaining due diligence standards to support the submission of high-quality IPO applications.