Bursa extends validity period of 20% general mandate to Dec 31, 2022

KUALA LUMPUR: Bursa Malaysia Bhd has announced another 12 months extension of the temporary relief measures to provide flexibility for fundraising.

The exchange said the increased general mandate of 20% for new issue of securities by way of private placement (20% general mandate) and the general mandate of 50% based on a pro-rata entitlement for new issue of securities by way of rights issue (pro rata 50% general mandate), each of which would have expired on Dec 31.

“This extension is in line with Bursa Malaysia’s commitment to assist listed issuers to address their funding needs and working capital requirements by easing compliance and facilitate secondary fundraising,” Bursa Malaysia said in a statement.

Chief executive officer Datuk Muhamad Umar Swift said it was imperative for listed issuers to be able to raise funds through the secondary market in an expedient, efficient and cost-effective manner during these challenging times.

The 20% general mandate previously announced on April 16, 2020 will be extended for another 12 months for listed issuers that have not raised any funds using the 20% Mandate in 2020 or 2021.

Bursa Malaysia said such listed issuers will have up to Dec 31, 2022 to issue new securities under the 20% general mandate subject to the same prescribed conditions.

Meanwhile, the validity of the pro-rata 50% general mandate announced on Nov 10, 2020 is similarly extended for another 12 months until Dec 31, 2022.

An eligible listed issuer may issue rights securities on a pro-rata basis using this mandate, subject to compliance with the same conditions as imposed earlier.

Additionally, Bursa Malaysia said the pro-rata 50% general mandate can now be utilised to issue a combination of ordinary shares/units and convertible equity securities (instead of just ordinary shares/units previously) as part of the rights issue exercise.