MIDA says 300 private companies are fit for main board listing

KUALA LUMPUR: The Malaysian Investment Authority (MIDA) has identified some 300 private companies, from various sectors, fit for a potential listing on the stock exchange's main board.

The companies identified through a survey conducted by the investment authority on 4,000 companies with licences approved by MIDA, has an uninterrupted net profit of more than RM20 million for a period of three to five full financial years, and a paid-up capital of RM2.5 million and above.

Datuk N.Rajendran, Deputy CEO of MIDA, said in line with the country's progress towards Industry 4.0, it is vital for companies to have the capacity to expand, and making a way to the boards of the stock exchange can be beneficial for companies to tap into more capital.

"We believe that the government cannot continuously support the expansion and re-investment of existing companies by providing them incentives and grants, although it is still available," he said.

"We also like them (companies) to go out to the market for expansion purposes and seek funds, and of course a lot of them have difficulties going to the bank," Rajendran told reporters at a press conference after a forum organised by MIDA in collaboration with Bursa Malaysia.

Last year, Bursa Malaysia saw a listing of 11 companies on the stock exchange, with RM600 million raised collectively in Initial Public Offerings(IPO).

This year, more than RM5 billion has been raise.