New rules for main board listing


  • Business
  • Wednesday, 12 Mar 2003

BY PAULINE S.C. NG, KATHY FONG AND IZWAN IDRIS

PROPERTY development and construction companies are not allowed to seek listing under the new market capitalisation requirements announced by acting Prime Minister Datuk Seri Abdullah Ahmad Badawi yesterday.  

The new requirement is only applicable for companies that intend to float shares on the KLSE main board. 

Elaborating on the measure, the Securities Commission (SC) said in a statement last night that under the new listing market cap requirements, companies seeking listing in a group must be in the same or complementary business. 

They must also have common directors and shareholders with controlling shareholdings (on collective basis) for at least three full financial years, prior to submission to the SC. 

Other details include:  

A minimum market cap of RM250mil calculated based on the tentative issue price and enlarged issued and paid-up capital at the point of submission to the SC and also at the time the prospectus is issued; and 

An after-tax profit of at least RM8mil for the most recent financial year prior to submission to the SC. 

The SC also announced a one-year moratorium to be imposed on shareholders to sell or transfer 45% of the issued and paid-up capital of companies that would be listed under the new market cap requirement.  

The new moratorium on disposal of securities was also applicable for all IPOs on the KLSE main and second board, including property development and construction companies, the SC said. 

The new treatment of moratorium would apply automatically to proposals which have been approved by the SC since October last year. 

Shareholders who are currently holding moratorium securities based on the existing requirements, imposed before October last year, can apply to the SC to opt for the revised moratorium with appropriate justifications.  

For shareholders of the IPOs of infrastructure project companies (IPCs), the same moratorium requirement of one year would apply, except that 50% of the moratorium shares would be released on straight-line basis upon the infrastructure project achieving one full financial year of audited operating revenue. 

As for the acquisitions of assets resulting in reverse takeovers of listed companies, a moratorium would be imposed on 50% of the securities to be received by vendors of the assets to be injected. 

This means that the vendors of those assets will not be allowed to sell, transfer or assign 50% of the consideration securities for one year from the date the securities are listed on the KLSE. 

“Thereafter, the securities are not subjected to any moratorium requirement,'' the SC said. 

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