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."