PETALING JAYA: Companies seeking Main Market listings effective June 3 onwards will now need to show higher profits as part of the Securities Commission (SC) revised equity guidelines.
The regulator announced yesterday that an applicant must have an aggregate after-tax profit of at least RM30mil for the most recent three full financial years.
As for the most recent financial year, the SC now requires an after-tax profit of at least RM15mil, based on audited financial statements.
Previously, a company seeking Main Market listing was required to have an uninterrupted audited profit of three to five full financial years, with an aggregate after-tax profit of at least RM20mil and an after-tax profit for the most recent financial year of at least RM6mil.
The other key enhancements to the equity guidelines include stronger financial reporting quality, greater flexibility in operating cash flow assessment and broader eligibility for infrastructure-type of listings.
As for the ACE Market, it has been reinforced as a sponsor-driven market, with a minimum two-financial year post-listing track record before transfer to Main Market.
Exemptions on sponsorship and moratorium have been removed, and the minimum public share allocation requirements was introduced.
In a statement, the SC said that the enhancements are aimed at improving access to public listings for issuers, besides clarifying the roles and strengthening the differentiation of each market segment.
