Malaysia IPO process requires careful planning to meet the requirements for listing on the stock market successfully. Get your company listed in public in Malaysia is a big step forward. It means you're ready to sell shares of your company on the stock market to raise money. But it's not easy. You have to follow strict rules and share detailed financial information. Our Malaysia IPO process guide helps you understand how to do this in Malaysia. We explain the steps you need to take and what you need to know can you get your company listed successfully. 

How to List Company in Bursa Malaysia - Malaysia IPO Process

When a business in Malaysia plans to listed in public, it must meet certain criteria, both quantitative and qualitative.

Here is the process of listing a company in Malaysia:

1. Engage with professional advisors

When listing a company on Bursa Malaysia, you need to start engage with some professional advisors. These advisors will serve as the Due Diligence Working Group (DDWG) and provide comprehensive assistance.

The professional advisors include:

• Investment Bank
  The investment bank serves as the primary advisor, offering guidance on listing structure, timing, pricing, and regulatory compliance. They coordinate with other professionals, such as accountants, lawyers, market researchers, and property valuers, in document preparation, prospectus creation, and due diligence. Additionally, they handle the submission of application documents and prospectus to regulators.

• Lawyers
  Lawyers provide legal counsel on all aspects of the listing application, conducting legal due diligence and document verification. They are responsible for drafting documents, including due diligence planning memoranda, reports, and meeting minutes.

• Reporting Accountants
  Accountants prepare the Accountant’s Report and conduct financial due diligence on application documents and prospectus information. They may also assess the applicant's internal control system and analyze future financial performance reports if required.

• Property Valuer
  Independent property valuers evaluate any property, plant, machinery, or equipment involved in the listing exercise and provide a valuation report. This report is submitted to Bursa Malaysia Securities Berhad/Securities Commission before the listing application.

• Business and Market Researcher
  Independent researchers assist in developing a comprehensive report on the company's business prospects, market position, and risks. They also review Management Discussion and Analysis disclosed in submission documents.

• Issuing House and Share Registrar
  The issuing house manages the allotment, balloting, and share issuance processes, while the Share Registrar maintains the Register of Members and liaises with Bursa Malaysia Depository Sdn Bhd on behalf of the company.

• Public Relations (PR) Company
  Responsible for generating awareness, interest, and appeal for the company preparing to be listed.

• Tax Advisor
  Offers expert advice on tax matters, particularly regarding group restructuring, property transfers, and cross-border activities.

• Company Secretary
  The company secretary assists in ensuring statutory information accuracy before submission. Also ensures compliance with Listing Requirements, Malaysian Code on Corporate Governance, and relevant regulations regarding company board structure, committee composition, terms of reference, and constitution.

2. Due Diligence

Professional advisors must perform due diligence to verify the accuracy and prevent any misleading information in the prospectus.

The due diligence process encompasses several key steps:

• Sharing the prospectus with the public.
• Dealing with comments from regulators.
• Gathering and arranging documents, and creating the prospectus.
• Sending the listing application.

3. Drafting the prospectus

Creating the prospectus involves including these details:

• Schedule of when the offer starts and ends.
• Information about company directors, like their names and addresses.
• Important details about the offer and the company.
• Specifics of the public offering, such as the types and amount of securities and any associated rights.
• Risks involved.
• Description of the company's business and industry, including any subsidiaries or associated companies.
• Future plans, strategies, and outlook for the company.
• Any transactions involving related parties or conflicts of interest.
• Financial information.

4. Selecting individual directors

The director must be chosen to serve on the company's board, as mandated by Bursa Malaysia's Listing Requirements. Additionally, one-third of the board members must be independent directors.

5. List and value the company

You must determine an appropriate equity structure and decide how to offer the company's shares. The common options include issuing new shares or selling existing ones.

6. Preparation of documents for submission

The DDWG will handle the preparation of the listing application, including determining the listing method and valuation for your company. Advisors will collect detailed company information to prepare the application and prospectus. Company directors, senior management, and other relevant parties must provide written declarations as mandated by regulators.

IPO Listing Fee in Malaysia

In Malaysia, companies aiming to go public through an Initial Public Offering (IPO) must be prepared to incur various listing fees. These fees cover the costs associated with the listing process and regulatory compliance. The IPO listing fees in Malaysia vary depending on the market segment chosen for listing, such as the Main Market, ACE Market, or LEAP Market.

The Main Market, ACE Market, and LEAP Market are different segments of Bursa Malaysia, the stock exchange in Malaysia, each catering to companies at different stages of development and with varying requirements for listing.

• Main Market: This is the primary market segment of Bursa Malaysia, where established and larger companies typically list. Companies listed on the Main Market are subject to stricter regulatory requirements and governance standards.
• ACE Market: The ACE Market, also known as the Access, Certainty, Efficiency Market, is a market segment designed for smaller companies or companies in the early stages of growth. Listing requirements on the ACE Market are less stringent compared to the Main Market, making it more accessible for smaller companies. 
• LEAP Market: The LEAP Market, which stands for Leading Entrepreneur Accelerator Platform, is a platform for small and medium-sized enterprises (SMEs) to raise capital through the stock market. 

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