THE Securities Commission (SC) and Bursa Malaysia Bhd have jointly committed to an expedited three-month approval period for IPOs on both the Main Market and the ACE Market.

The commitment was applicable to new IPO applications received from March 1, 2024, according to their joint statement.

The commitment for a prompt decision on regulatory approval within three months will be premised on the principal advisers/sponsors satisfactorily addressing the regulators’ queries and comments on IPO applications within five market days.

They said the move would 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.

The Malaysian equity capital market has remained a cornerstone of funding for companies, with IPOs raising RM3.6 billion in 2023, said SC chairman Datuk Seri Dr Awang Adek Hussin.

“We believe our approval timeframe is able to cater for 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,” he said.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said the more competitive time-to-market would enhance the exchange’s attractiveness to companies seeking to list in Malaysia.

“Our equities market is ready to support the cycle of fundraising and investing, to grow businesses,” he said.

In the same statement, Malaysian Investment Banking Association (MIBA) chairman Lee Jim Leng said the move would benefit businesses seeking to raise capital and enhance the overall credibility and transparency of the capital market. — TMR