Malaysia is a fabulous business destination. The geological location, the local government of this country, the society, surrounding, and environment, all are in favor for conducting business. Now you must be wondering what a public listed company is and how can you turn your company into a public listed company in Malaysia.
Before answering those queries about becoming a listed company in Malaysia, make sure your company is appropriately incorporated in this nation. There are some rules that need to comply to register a company In Malaysia. The foremost part is to go through the Companies Commission of Malaysia (CCM) and submit required paperwork.
Once approved, you can start operating a business legally in the country. When you got an approved business in your name, the next step is to make sure the company is trading on the official stock exchange; this is the step stone of the Malaysia public listed company.
When your company is being listed on the stock exchange of Malaysia, the business is in fact opens up shares of the company for public investors. These shares can be bought or sold by investors. Such transactions can be carried out by existing shareholders of your company as well. By doing so, you can evaluate the company’s current market value.
The value of each share will represent the actual unit market price of your company. Through this process, you can also have detail knowledge of market demands of your company among current and new shareholders.
By this time you might ask how your company becomes a listed company in Malaysia stock exchange. There are some checklists stock exchange places before a company, which includes a minimum number of shares your company must come up with, minimum level of earning the company must generate, etc. Below in this article, you will get a list of requirements Malaysia stock exchange to expect your company to cover.
What is a listed company?
Once a business is registered with the Suruhanjaya Syarikat Malaysia (Companies Commission of Malaysia), if the businesses transact on the official stock exchange, it will be considered as a listed company in Malaysia. Companies that wish to be listed on a stock exchange must first meet all the listing requirements of that exchange and include the number of shares listed and the minimum earnings level of the company.
What should I consider before listing a company in Malaysia?
If you have a plan to go under bursa Malaysia listed company, you must consider several key requisitions from the Security commission or SC of Malaysia. Below are the checklists you should consider reviewing before proceeding for company listing:
- Make sure the company has enough financial support to bear the responsibility implied by the stock exchange.
- It must be ensured that the company invests sufficient time and potentials of listing compliances.
- Keep in touch with your current and potential future investors by strengthening the means of communications once your company is listed.
- Make sure the intended company meets stakeholder’s business objectives when listed.
- Once listed the company will go through considerable accountabilities. Is your company ready for such vigorous follow ups when reporting has to be submitted at regular intervals?
- Make sure you are ready to accept certain alterations in your company’s shareholder listing positions once stock exchange enlists the company.
Company listing process by Malaysian Stock Exchange
Once you have figured out the compatibility factors that can make your business a public listed company in Malaysia, you are now ready for the detail listing process recommended by the Stock Exchange of Malaysia. So, now if your inquiry of bursa Malaysia listed company or company listing process arises, now is the time to get the answer, and the answer is given in a list of procedural steps below:
Appointing a professional advisor
At the very beginning of the listing process, consider hiring or appointing a professional advisor who have prior knowledge on company listing process. The appointed adviser at this point will be responsible to establish a Due Diligence Working Group (DDWG), which is necessary for the company listing process in Malaysia. The advisor can also introduce you with other professionals and business advisors relevant to this particular task.
Corporate Alterations and modifications
You have to consider several alterations and modifications when planning to list your company in Malaysia stock exchange. Especially in the fields of company governance policy, business structure, company framework and stakeholders roles and responsibilities, board of directors, etc.
An independent Director for your company
It is made compulsory by the Bursa Malaysia to appoint and add an independent director to the company’s existing board of director’s panel. The appointment has to be done accordingly and is a part of company listing process in Malaysia.
Figure out the best approach for offering shares
There are several methods and approaches that you can move forward with in this process. You need to decide the best possible approach to share your company shares once listed. The approach however, will follow your business structure, current condition, financial status.
Prepare company prospectus for public exposure
Due Diligence Working Group (DDWG), which was previously introduced by your hired advisor, will come into action in this point. They will prepare your company prospectus that will be up for the public exposure when your company will be listed.
They will also take charge of preparing necessary paperwork for this whole process. The prospectus and documents which are prepared need to be precise and not misleading. When submitted to Securities commission (SC), this prospectus will be up on the SC’s website for 15 working days for public exposure.
Listing approvals by
The Security exchange will approve the prospectus you have for the public exposure. SC will issue an approval letter and initial public offering or IPO for your documents and company prospectus if you are heading for the Main market listing. However, if it is an ACE market, Bursa Malaysia will take charge and issue approval letter for your company.
Final registration of company prospectus
Once the Initial Public Offering or IPO is approved you are now eligible to register your company prospectus. The Due Diligence Working Group of the company will prepare the final legal verification paper when registration process is on the way.
Mean this time the prospectus will be offered to the potential public investors for a certain period of time. As soon as the period is over and someone approaches to buy the share, that particular share will automatically be booked for that particular applicant.
If your paperwork is up to the mark and meets all Malaysia stock exchange regulations without facing any legal or procedural issues, your company will entitled to become a listed company in Malaysia. The finalization of listed company in Malaysia will be commenced within 27 to 28 weeks after prior application.
So, next time if you or any other investor or company owner you know enquires you about the process of becoming a Malaysia public listed company, now you have the detail information and data log regarding the procedural steps of Malaysia stock exchange Company listing.