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!
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.
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.
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
Bursa processing fee
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)
Fee for registration of prospectus payable to Securities Commission
RM15,000 for Main Market and Ace Market
Fee for lodgment of Information Memorandum (LEAP)
Initial listing fee
Annual listing fee
Professional fees (legal advisers, reporting accountants, auditors, valuers, company secretary, internal auditors, independent market researchers, etc)
Volume of work and complexity involved
Investment Bank’s fees
Usually 2% of shares underwritten or placed
Usually 1% of shares offered to Malaysian public via ballot
Printing charges, advertising and miscellaneous
Overall estimated costs of listing:
Type of fees
Approximate minimum fees
RM4 mil to RM5 mil
RM1 mil to RM2 mil
How prepared is your business to go for IPO listing?
Is your company ready for IPO listing? Which market should you list on - Main, ACE, or LEAP?