BURSA Malaysia will undertake the registration of ACE Market prospectuses effective Jan 1 next year following amendments to Schedules 6 and 7 of the Capital Markets and Services Act 2007 (CMSA 2007) which come into force today (July 1).
“Upon the transfer of the registration function which is currently assumed by the Securities Commission (SC), Bursa Malaysia will become the one-stop centre for all approvals in relation to ACE Market listing,” the SC pointed out in a media statement.
According to the SC’s approval process of initial public offerings (IPO) in Malaysia, all companies seeking listing on Bursa Malaysia will require SC’s approval under Section 212 of the CMSA 2007.
In addition, a prospectus issued in conjunction with the listing must be registered with the SC.
For Main Market applications, the SC will generally complete its assessment and register the IPO prospectus within 60 working days from the date of a full and complete application complete with registrable prospectus; 40 working days for companies with large capitalisation.
For ACE Market listing application, SC’s approval under Section 212 is not required. However, the IPO prospectus is subject to SC’s review, a process that will take 40 working days from submission of the registrable prospectus.
Elsewhere, the SC said Schedule 5 of the CMSA 2007 which sets out the type of corporate proposals that do not require the SC’s approval has also been amended to include the following:
- Initial exchange offering of digital assets through a Recognised Market Operator; and
- An initial public offering (IPO) or cross-listing of the shares of a public company or listed corporation on a stock exchange outside Malaysia.
Additionally, the amendments, effected through changes made to Schedules 6 and 7 of the CMSA 2007 have widened the categories of sophisticated investors.
This will include among others, individuals with investments of RM1 mil in capital market products, either on their own or through joint accounts with their spouse; CEOs and directors of licensed or registered persons under the CMSA 2007; and corporations that manage funds of their related companies with assets of more than RM10 mil.
“This will allow more investors to expand their investment options while issuers can now tap into a larger pool of sophisticated investors,” added the SC. – July 1, 2021
