Bursa Malaysia amends Main Market and ACE Market Listing Requirements on public security holding spread

21 April 2021

On 23 February 2021, Bursa Malaysia Berhad (“Bursa” or “Bursa Malaysia”) made amendments to the Main Market and ACE Market Listing Requirements (collectively, “Listing Requirements”) in relation to lower public security holding spread requirements (“Public Spread Amendments”).

Under the Public Spread Amendments which came into effect on 1 March 2021, Bursa 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: 
  • an applicant or listed issuer with market capitalisation of RM1 billion or more but less than RM3 billion will be subject to the acceptable minimum lower public spread of 20%; 
  • an applicant or listed issuer with market capitalisation of RM3 billion or more will be subject to the acceptable minimum lower public spread of 15%
• the appropriateness and rationale of the application through the following qualitative criteria: 
  • sufficiency of liquidity in the securities; 
  • orderliness of trading of the securities;
  • good corporate governance conduct and compliance records of the listed issuer or applicant and its directors; and
  • reasonable justification necessitating the lower public spread.