Subscribe in a reader | Subscribe by Email A bit of good news in that the ruling of needing to have 30 percent equity for those planning to list in Bursa Malaysia has been relaxed. The company must show proof that the allocation was not fully subscribed after two levels of offering exclusive to bumiputras. After that, it can be opened to general public (which of course include the bumiputras as well).
Companies seeking listing on Bursa Malaysia can now open their shares to the public if all efforts to get the 30% bumiputra equity participation fails.
Finance Minister Datuk Seri Najib Tun Razak said while the 30% bumiputra equity participation policy was being maintained, the shares could be offered to the public through the initial public offering (IPO) balloting process, should they not be fully subscribed.
“There is a change in the way it (the policy) is being implemented,” he told reporters after a briefing by the Securities Commission (SC) here yesterday.
“This is part of our efforts to make our capital markets more competitive.”
He said there would now be two tiers for bumiputras to acquire their 30% equity.
The first tier was through International Trade and Industry Ministry-approved bumiputra institutions and the second would be the bumiputra public.
If the 30% equity was still not taken up, it would be opened to others.
“In the event the allocation is not fully subscribed by the bumi public as well, then the company concerned would be deemed to have fulfilled the 30% bumiputra NDP (National Development Policy) requirement,” he said.
“So this takes out the element of uncertainty.”
When asked if this would jeopardise the bumiputra equity in the long run, Najib replied:
“I don’t think so. Actually, this will allow bumi individuals to participate as well.”
