[Last updated: 1 January 2024, unless otherwise noted]

To qualify for listing, a company must meet at least one of the following tests:

Profit Test

Uninterrupted profit of three to five full financial years, with an aggregate after-tax profit of at least MYR20 million (approximately US$4.35 million).

After-tax profit of at least MYR6 million (approximately US$1.31 million) for the most recent financial year.

Market Capitalization Test

A total market capitalization of at least MYR500 million (approximately US$108.80 million) upon listing.

Infrastructure Project Corporation Test

Must have the right to build and operate an infrastructure project in or outside Malaysia:

• With project costs of not less than MYR500 million (approximately US$108.80 million).
• For which a concession or license has been awarded by a government or a state agency with a remaining concession or license period of at least 15 years.

[Last updated: 1 January 2024, unless otherwise noted]

Share price. Minimum offering price of MYR0.50 (approximately US$0.12) per share.

Distribution. The applicant must:

• Have at least 25% publicly held shares.
• Have at least 1,000 public shareholders, holding not less than 100 shares each.
• Allocate 50% of the public spread requirement to Bumiputera (the indigenous people of Malaysia) investors (where the company derives more than 50% of its after-tax profit from operations based in Malaysia).

Accounting standards. The audited financial statements provided in the prospectus must be prepared in accordance with the approved accounting standards under the Malaysian Financial Reporting Act 1997.

Financial statements. The applicant is required to disclose selected financial information from its audited financial statements provided in the prospectus, as determined by the relevant quantitative listing criteria to qualify for listing.

Operating history. The applicant must have been incorporated and operating in the same core business over the profit track record period (if it is seeking to qualify by way of the profit test) or must have been incorporated and generated operating revenue for at least one full financial year prior to the application for listing (if it is seeking to qualify by way of the market capitalization test).

Management continuity. The applicant must have substantially the same management for at least three full financial years or since the commencement of its operations (if the applicant has been in operations for less than three full financial years and is seeking listing by way of the market capitalization or infrastructure project corporation tests).

Incorporation. A foreign company must be incorporated in a jurisdiction that is subject to corporation laws and other relevant laws and regulations, which have standards at least equivalent to those in Malaysia.

Registration. A foreign company must register with the Malaysian Registrar of Companies and establish transfer and registration of securities facilities in Malaysia.

[Last updated: 1 January 2024, unless otherwise noted]

The indicative process and timeline for listing a company on the Main Market of Bursa Malaysia is as follows:

Link to Chart

[Last updated: 1 January 2024, unless otherwise noted]

Requirements for a company listed on the Main Market include:

• At least two directors (or 1/3 of its board of directors, whichever is higher) must be independent directors and at least one director is female. The Malaysian Code on Corporate Governance 2021 requires a higher proportion of independent directors and at least 30% of the board comprises of women directors.
• Each director must hold no more than five directorships in listed issuers (including the company).
• If the company has operations that are predominantly based in Malaysia, it must have a majority of directors whose principal or only place of residence is in Malaysia.
• If the company has operations that are predominantly foreign-based, it must have at least two directors whose principal or only place of residence is in Malaysia and at least one of these directors must be a member of the audit committee.
• Appointing an audit committee (consisting of at least three directors).
• Appointing a suitable accounting firm to act as its external auditors.
• Establishing an independent internal audit function.
• Preparing an annual report which includes its audited financial statements as well as the auditors' and directors' reports of the listed issuer.
• A listed issuer also has other continuing disclosure and reporting obligations to Bursa Malaysia.
• A listed issuer would also need to report on its management of material economic, environmental and social risks and opportunities, and governance structure in place to manage these sustainability matters.
• Additional requirements relating to the governance of a company may be imposed by sectoral regulators.

[Last updated: 1 January 2024, unless otherwise noted]

A company seeking to list must pay both initial listing and annual fees. The initial listing fee for the Main Market is 0.01% of the total market value of the company's share capital and ranges from MYR20,000 to MYR200,000 (approximately US$4,352 to US$43,520). Additional shares listed subsequently will require additional payments. The annual fee is 0.0025% of the total market value of the company's share capital and ranges from MYR20,000 to MYR100,000 (approximately US$4,352 to US$21,760). Other costs include processing fees payable to the SC, fees for registration of the prospectus, advisers' fees as well as brokerage fees.