Malaysia pledges to cut IPO approval time to three months for Main and Ace markets

[KUALA LUMPUR] Malaysia’s stock exchange operator and regulator said on Monday (Feb 26) that they will expedite the approval time for initial public offerings (IPOs) on both the Main and Ace markets to three months.

In a joint statement, Bursa Malaysia and the Securities Commission said the speedier approvals will depend on the principal advisers or sponsors satisfactorily addressing the regulators’ queries and comments on IPO applications within five market days.

The Main Market is a prime market for established companies, while the Ace Market is a sponsor-driven market designed for companies with growth prospects.

The faster approvals will apply to new IPO applications received from Mar 1.

“This will augment the regulators’ current practice since 2021 of issuing queries and comments within 10 market days following a complete IPO application, as well as issuing subsequent queries and comments within five market days to each response round,” said the joint statement.

According to Bursa Malaysia’s website, the current IPO listing process for the Main and Ace Markets takes about four to 12 months, depending on the complexity of the listing scheme.

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Bursa Malaysia chief executive Muhamad Umar Swift said the more competitive time-to-market will enhance the exchange’s attractiveness to companies seeking to list in Malaysia.

“We aim to provide a holistic and customer-friendly facilitation by regulators and principal advisers or sponsors, to better support companies that intend to raise capital through IPOs and elevate their status as publicly listed companies,” he added.

Securities Commission chairman Awang Adek Hussin said the three-month approval timeline will cater to the dynamic business needs of companies looking to raise funds in the capital market.

“(This is) part of our ongoing efforts to remain competitive and relevant for both local and international investors,” he said.

He noted that the Malaysian equity capital market has remained a cornerstone of funding for companies, with IPOs raising RM3.6 billion (S$1 billion) in 2023.

The Securities Commission and Bursa Malaysia said advisers and professionals should uphold due diligence standards to enable the highest-quality IPO applications by adhering to guidelines and requirements, and ensuring quality disclosures, high standards of corporate governance, as well as timely and satisfactory responses to regulator queries and comments.