KUALA LUMPUR – Bursa Malaysia Berhad 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 (Public Spread Amendments). Currently, the Listing Requirements prescribes that a listed issuer/applicant must have at least 25% of shares/units in the hands of the public.
Maintaining an appropriate level of public security holding spread is essential to provide sufficient liquidity in the market. Under the Public Spread Amendments, the Exchange will consider an application for a lower public spread based on a balanced assessment, comprising both quantitative and qualitative criteria as described below.
- The size and level of liquidity of an applicant or listed issuer through the following market capitalisation criteria.
- The appropriateness and rationale of the application, including if the 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 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 1 March 2021.