SC says enhanced IPO framework to take effect on Jan 1

KUALA LUMPUR: The Securities Commission (SC) has announced today an enhanced initial public offering (IPO) framework effective Jan 1, 2021.

The new framework, which is also applicable for Reverse Takeover (RTO) submissions, is to promote greater shared responsibility among key stakeholders involved in the submission of an IPO for listing on the Main Market of Bursa Malaysia.

“Under this enhanced approach, the SC places greater emphasis on the shared responsibility among all stakeholders involved in the IPO application process," its chairman Datuk Syed Zaid Albar said in a statement today.

"Applicants and all their advisers will play a greater role to ensure that relevant due diligence is properly conducted before the submission and that the governance standards of industry gatekeepers are maintained in order to facilitate greater efficiency in the approval process,” he said.

One of the key features of the new framework is the introduction of a mandatory pre-submission holistic consultation between the SC and key stakeholders including the applicant, principal advisers, lawyers, reporting accountants and valuers.

The SC said that the mandatory pre-submission session will facilitate discussions of any material issues and concerns prior to the submission of IPO application.

Meanwhile, the SC is also looking into reforming the regulatory framework for the ACE Market.

"Discussion is currently being held on the potential migration of the entire ACE market framework including registration of prospectus to Bursa Malaysia in the first half of 2021," it said.

"In this regard, the SC will be working closely with Bursa to enhance its internal processes and resources in order for Bursa Malaysia to undertake this additional function."

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3


Next In Business News

Tropicana sells 1.85 million Top Glove shares at a loss
CPO futures likely to trend higher next week
Asian LNG spot prices rise as China replenishes inventories
US stops short of branding Vietnam, Switzerland, Taiwan currency manipulators
Oil price down but secures weekly gain on recovery hopes
GLOBAL MARKETS-World stocks at new peaks on strong China, US data
Food for thought
Food inflation will continue to rise if efficiency is not addressed
Short position - AmBanks' placement, virtual AGMs, glove stocks
The question of MoUs materialising

Stories You'll Enjoy