Malaysia | Amendments to the Main Market Listing Requirements following Enhanced IPO Framework

On 11 August 2021, Bursa Malaysia Securities Berhad (“Bursa Securities”) reviewed the Main Market Listing Requirements (“MMLR”) to ensure parity of regulation with the Securities Commission Malaysia’s (“SC”) introduction of an enhanced initial public offering (“IPO”) framework which took effect on 1 January 2021.  

The enhanced IPO framework’s aim is to, amongst others, promote greater shared responsibility among key stakeholders involved in the Main Market IPO listing submission and introduce a new Recognised Principal Adviser (“RPA”) Regime to liberalise the existing industry and allow for a larger pool of qualified professionals to be involved in the submission of IPO applications to the SC.

In view of the SC’s enhanced IPO framework, Bursa Securities has proposed some amendments to the MMLR and sought public consultation on the same. Some key proposed amendments to the MMLR are as follows:

• to streamline the eligibility requirements of a Principal Adviser under the MMLR to be in line with the SC’s RPA Regime;
• in respect of proposals which require greater supervision and oversight of the RPA, its qualified person and senior officer under the MMLR (“Specific Proposals”) including additional listing applications, to require the RPA to be primarily responsible for the Specific Proposal (and if there is more than one RPA for the Specific Proposal, all such RPAs are jointly and

severally responsible for the Specific Proposal); and

• to cease to be overly prescriptive on how a RPA should conduct a due diligence exercise or on the applicable standard in a due diligence exercise, particularly for corporate proposals which involve new issuance of securities.

Notwithstanding the above, the RPA and other relevant advisers must make due and careful enquiries and comply with the equivalent obligations and standards under the SC’s Guidelines on Submission of Corporate and Capital Market Product Proposals. Further, the RPA and other relevant advisers are advised to undertake the due diligence exercises in accordance with industry best practices, which is the

Malaysian Investment Banking Association’s Malaysia Equity Capital Markets and Debt Capital Markets Due Diligence Guides.

Bursa Securities welcomes the views and feedback from the public on the proposed amendments. The full text of the Bursa Securities’ public consultation paper can be assessed here.