Three rules on pricing of shares for IPO on the Main Market


Any offer of shares of a company seeking for listing on the Main Market of Bursa Malaysia (other than SPAC listing) would need to comply with the following pricing requirements under the Equity Guidelines:

1. The exercise price of warrants and options, and the conversion price of convertible securities that are issued prior to or as part of the listing scheme must not be lower than the price of the ordinary shares offered to the general public under the IPO.

2. The issue price of equity securities, other than warrants and convertible securities, offered for subscription or sale, for which a listing is sought, must be at least RM0.50 each.

3. Where securities are offered to related parties in conjunction with the IPO, the price of the securities offered to such related parties must be set at least at the issue price to the general public.

“Related party” has a technical definition under the Listing Requirements. Legal advisers would usually run through a list of questions to determine whether an investor is a related party of the company seeking to list on the Main Market of Bursa Malaysia.


This post was first posted on Linkedin on 2 March 2022.

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