Page 36 - Introduction To Investment Management

The underwriter also will determine the best offering price and the right time for the
shares to enter the market.

2.3.1 The Procedure involved in IPO

The listing procedure in Bursa Malaysia can be divided into two different

categories, Main Market and ACE Market. These two markets were introduced by Bursa
rd
Malaysia on 3 August 2009 as a replacement of Main Board, Second Board and MESDAQ
Market in Bursa Malaysia.

MAIN MARKET – merging of Main Board and Second Board
ACE MARKET – revamp of MESDAQ Market

This new framework for listings and equity fund-raisings is aimed at allowing

efficient access to capital and investments, as well as making Bursa Malaysia a more
attractive platform for Malaysian and foreign companies.

There is a significant shift in the regulatory approach with regards to listings and equity

fund-raisings. This shift to a more market-based regulatory approach is to ensure greater
efficiency and competitiveness without compromising on investor protection.

All companies must comply with the Main Market Listing Requirement (MMLR) in order

to issue their IPO. Some of the requirements are: -

i. The Company’s prospectus to be registered with the Security Commission for
assessment and evaluation.

ii. Comply with the Equity Guidelines and the applicant’s directors and substantial
shareholders are free from any adverse records and corporate governance issues.

iii. The IPO prospectus will be reviewed for adequacy of disclosure and compliance

with Prospectus Guidelines- Equity and Debt.

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