Listing your company on Bursa Malaysia

IPOs in 2023

Introduction

We live in interesting times where wealth can be created in numerous ways. One of them is to list a company.

A listed company’s shares become a form of currency which can be used for a variety of purposes. An example would be to use the shares as currency for the acquisition of businesses to grow the listed company. A bigger and more competitive company is always more attractive to future investors.

In a nutshell, success builds upon success. Many other opportunities will also follow. Access to capital is not only restricted to issuing of shares but to having access to the capital market by way of bonds, convertible loan stocks, etc.

Truly, one just needs some imagination to be able to harness the power of the stock exchange.

We are honored to share with you in this publication some of our knowledge on IPOs based on our many years of experience in this field as IPO advisers, reporting accountants, listed company auditors, listed company tax consultants and listed company internal auditors.

If you are contemplating an IPO, please feel free to contact us for a chat. We will be most glad to travel on this interesting journey with you. Like the quote says “If you want to go fast go alone. If you want to go far go together.”

Together, we can work to make your IPO a great success!

In 2023, Bursa Malaysia experienced a dynamic year with a total of 32 initial public offerings (IPOs), reflecting a vibrant and diverse market landscape. The distribution of these listings showcased the vibrancy of Bursa Malaysia, with 1 company listing the Leap Market, 24 opting for the ACE Market, and 7 entering the Main Market. The cumulative funds raised through these IPOs reached an impressive RM3.6 billion, amplifying the financial vitality of the exchange. This substantial influx of capital played a pivotal role in elevating the market's overall valuation to a notable RM18.0 billion.

For those considering taking their company public, Bursa Malaysia's thriving IPO landscape in 2023 highlights the favorable environment for listings. Whether your company is suited for the Leap Market, ACE Market, or Main Market, the Malaysian Stock Exchange offers a platform for companies of diverse sizes and industries to access capital and enhance their market presence.

If you're interested in exploring the possibilities of listing your company on Bursa Malaysia, read on for more information on how to navigate the listing process and tap into the potential benefits of being a publicly listed entity.

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How to list on Bursa Malaysia?

All listing candidates have to meet certain criteria whether quantitative or qualitative. Details of criteria which are not elaborated in this report can be found on Bursa Malaysia's website.

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Listing process

The listing process is shown below and the time frame from submission of the listing documents to the Securities Commission until actual listing can be up to 7 months.

The diagrams below are obtained from Bursa Malaysia’s website and publications.

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What are the costs of listing?

The costs of listing depend on a number of factors which are principally the size of the listing and the market listed on. A summary of the main costs involved are as follows:

	Type of expense	Basis of expense
1.	Bursa processing fee
	a)Main Market	RM80,000 & 0.05% of the total market value of securities to be listed and nominal value of any additional securities issued or to be issued subject to a maximum of RM800,000 (inclusive of fees for review of asset valuation, if any)
	a)Ace Market	RM30,000
	a)LEAP Market	RM9,000

2.	Fee for registration of prospectus payable to Securities Commission	RM15,000 for Main Market and Ace Market
3.	Fee for lodgment of Information Memorandum (LEAP)	RM500
4.	Initial listing fee	a)Main Market and Ace Market – 0.01% of the total market value of share capital (Minimum of RM10,000 for ACE Market and RM20,000 for Main Market; and maximum of RM20,000 for ACE Market and RM200,000 for Main Market). b)LEAP Market - RM3,000
5.	Annual listing fee	a)Main Market – 0.0025% of the total market value of share capital (Minimum of RM20,000 and maximum of RM100,000). b)Ace Market - 0.012% of the total market value of share capital (Minimum of RM10,000 and maximum of RM20,000). c)LEAP Market - RM5,000
6.	Professional fees (legal advisers, reporting accountants, auditors, valuers, company secretary, internal auditors, independent market researchers, etc)	Volume of work and complexity involved
7.	Issuing house	Volume of work and complexity involved
8.	Investment Bank’s fees
	a)Advisory fee	Volume of work and complexity involved
	a)Underwriting and placement fee	Usually 2% of shares underwritten or placed
	a)Brokerage fee	Usually 1% of shares offered to Malaysian public via ballot
9.	Printing charges, advertising and miscellaneous	As incurred