PETALING JAYA: Bursa Malaysia Bhd has reviewed the Main Market and ACE Market listing requirements to reflect, among others, the policy considerations for the acceptance of a lower public spread.
Currently, the listing requirements prescribe that a listed issuer/applicant must have at least 25% of its shares/units in the hands of the public.
Under the public spread requirements, Bursa said it will consider an application for a lower public spread based on a balanced assessment, comprising both quantitative and qualitative criteria.
Based on the size and the level of liquidity of an applicant or listed issuer, companies with a market capitalisation of RM1 billion or more but less than RM3 billion, the acceptable minimum lower public shareholding spread is 20%. For companies with a market cap of RM3 billion or more, the acceptable minimum lower public shareholding spread is 15%.
“The appropriateness and rationale of the application, including if there is sufficiency of liquidity, orderliness of trading of the securities, good corporate governance conduct and compliance records of the listed issuer/applicant and its directors, as well as reasonable justification necessitating the lower public spread,” the regulator said.
It added that the public spread amendments will promote greater transparency, as well as regulatory clarity and certainty on the policy considerations by the exchange in accepting a lower public spread.
“Notwithstanding the above, eligible listed issuers, and those granted with a lower public spread are strongly encouraged to maintain at least 25% public spread to promote wider participation of investors and a more liquid market.”
The public spread amendments will take effect from March 1.