On their part, the regulators said they will continue to maintain 'rigour in the assessment' to avoid compromising investors’ protection and public interests. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (Feb 26): Malaysia’s stock exchange operator and regulator on Monday jointly pledged to cut approval time to three months for both Main Market and ACE Market listings.

The sped-up approvals are applicable to new initial public offering (IPO) applications received from March 1, the Securities Commission Malaysia (SC) and Bursa Malaysia said in a joint statement. The commitment, however, will be premised on advisers or sponsors “satisfactorily” addressing the regulators’ queries and comments within five market days, the statement read.

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

The time frame would be able to cater to the “dynamic business needs of companies looking to raise funds in the capital market, as part of our ongoing efforts to remain competitive and relevant for both local and international investors”, said SC chairman Datuk Seri Dr Awang Adek Hussin.

Umar thinks the more competitive time-to-market will enhance the local exchange's attractiveness to companies seeking to list in Malaysia. (Photo by Zahid Izzani/The Edge)

The commitment tops 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.

Bursa is the sole approving authority for IPOs on the secondary board — the ACE Market — while a Main Market listing would still require the approvals of both Bursa and the SC.

Further measures, including “training modules, will be developed to support market professionals towards meeting the unified objective of a smoother journey to IPOs”, the SC and Bursa said.

A faster time-to-market for IPOs will not only benefit businesses seeking to raise capital, but also enhance the overall credibility and transparency of the capital market, said the Malaysian Investment Banking Association.

Awang thinks the time frame would be able to cater to the dynamic business needs of companies looking to raise funds in the capital market, as part of ongoing efforts to remain competitive and relevant for both local and international investors. (Photo by Sam Fong/The Edge)

On their part, the regulators said they will continue to maintain “rigour in the assessment” to avoid compromising investors’ protection and public interests.

Advisers and professionals, meanwhile, should “uphold due diligence standards to enable the highest quality IPO applications by adhering to guidelines and requirements, ensuring quality disclosures, high standards of corporate governance, as well as timely and satisfactory responses to regulator queries and comments”, they said.