The Approval Process of Initial Public Offerings (“IPOs”) in Malaysia

All companies seeking listing on Bursa will require SC’s approval, under Section 212 of the Capital Market and Services Act 2007. In addition, a prospectus issued in conjunction with the listing, must be registered with the SC. The SC will complete its assessment in three months from the date of submission of a full and complete application

The Securities Issues Department (“SID”), Asset Valuation Audit (“AVA”), Equity Compliance Unit (“ECU”) and Prospectus Department (“PD”) of the Issues and Investment Division process and evaluate the IPO applications.

SID reviews the viability of the IPO proposal. It checks if the IPO proposal is in compliance with the Policies and Guidelines on Issue/Offer of Securities, and that the applicant’s directors and substantial shareholders are free from any adverse records and corporate governance issues.

AVA reviews the valuations of assets to ensure they are reasonable, well founded and in compliance with the Guidelines on Asset Valuation and other applicable valuation standards. It also checks that adequate disclosures on property assets are made in the IPO prospectus.

ECU analyses the effect of the IPO proposal on the equity structure of the applicant, in particular the Bumiputera and foreign participation, in accordance with the National Development Policy requirement.

PD reviews the IPO prospectus to check the IPO prospectus contain disclosures that are not false or misleading, there is no material omission of information and the disclosures are in accordance to the Prospectus Guidelines-Public Offering as well as applicable provisions of the CMSA. It also checks that the prospectus is disclosed in a full and true manner for investors to make informed investment decisions.