17/01/2024

A Strategic Guide to IPO in Malaysia

Business advisory Doing business

Malaysia offers attractive opportunities for companies seeking to go public.

In a recent webinar, Steve from TGS TW Malaysia outlined the strategic considerations and requirements for companies pursuing an initial public offering (IPO) on Bursa Malaysia, the country’s stock exchange.

Key points included the quantitative and qualitative listing requirements that vary based on the main market, ACE market, or LEAP market. The main market has the strictest criteria focused on a track record of profits, while the ACE and LEAP markets have lower hurdles to accommodate high-growth companies.

Additional requirements covered were public shareholding spread, equity participation, and post-listing shareholder restrictions. Foreign companies can also list but must incorporate a Malaysian entity. The process takes 9-12 months and involves sponsors, advisors, auditors, and other parties to complete due diligence and documentation.

Listed companies enjoy relatively low ongoing compliance costs compared to other regional exchanges. Valuations are based on industry-standard PE multiples. Companies can expect to raise a minimum of 25% of the IPO valuation but may structure it as new share issuance or an existing shareholder sell-down.

Key success factors include: demonstrating sustainability in the industry, strong corporate governance and compliance, and properly addressing any potential conflicts of interest.

With the right preparation and strategy, Steve noted that listing in Malaysia’s attractive market is achievable for both local and foreign companies seeking growth capital and access to investors.

Considering an IPO in Malaysia? Reach out to Steve Ooi

– Steve has over 20 years of experience in audit, assurance and capital markets work in Malaysia, giving him deep expertise on the listing process and requirements.

– As audit partner at TGS TW Malaysia, one of the major accounting firms in the country, Steve and his team would be able to provide professional guidance on whether a company meets the listing criteria and how to structure the IPO successfully.

– Consulting with Steve early allows potential issuers to get feedback on any issues or improvements needed before formally starting the listing application process.

Get tailored advice on navigating the listing timeline, documentation requirements, and other strategic considerations based on your company’s specific situation.

Leveraging Steve’s expertise and network could help smooth and accelerate your company’s IPO journey in Malaysia’s active capital markets.

Considering an IPO in Malaysia?

Reach out to Steve Ooi

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