IPO Analysis and Equity Consultancy
Our equity capital markets solutions enable companies looking to list on the local stock exchange to raise public funds from the equity capital markets focusing on:
- Deal origination, equity syndication, marketing and execution of equity capital markets transactions among others i.e. Initial Public Offerings (IPOs), Reverse Takeovers (RTOs), rights issues, warrants issues, new share issues and secondary market placements of local equities.
Accomplishments.
One of our award-winning deals was for Southern Cable Group Bhd which received the Best ACE Market IPO Deal of the Year 2020 Award by Alpha Southeast Asia, where MIDF Amanah Investment Bank Bhd was the principal adviser, sponsor, sole underwriter, and placement agent for the IPO exercise. We also assisted Southern Cable Group Bhd to transfer their listing from ACE Market to the Main Market.
We also acted as the principal adviser, joint lead bookrunner, joint bookrunner, managing underwriter and joint underwriter for the listing of Swift Haulage Bhd, one of Bursa Malaysia's largest Main Market listings in 2021.
Frequently Asked Questions.
What is an IPO and what is its main purpose?
IPO is an acronym that stands for Initial Public Offering. As the name suggests, IPO refers to the process of offering shares of a private corporation/company for the first time to the public.
The purpose of an IPO is so that a company/corporation is able to raise equity capital from public investors. In Malaysia, this is solely regulated by Bursa Malaysia Berhad.
What are the requirements for an IPO in Malaysia?
To undergo the IPO process in Malaysia, there are several requirements that a company/corporation must meet. These requirements are divided into two sets, quantitative and qualitative.
Quantitative requirements include meeting the test criteria for profit, market capitalisation and corporation infrastructure, having the required public shareholding spread and allocating the required percentage of shares to Bumiputera investors.
Qualitative criteria include requirements for sponsorship, core business, management continuity and capability, financial position and liquidity, a moratorium on shares, and transaction with related parties.
There are also additional listing requirements for foreign companies and Special Purpose Acquisition Companies ("SPAC").
What are the steps of the IPO process and how long does it take in Malaysia?
There are four steps that are included in the IPO process in Malaysia, which includes;
- Step 1: Pre-Submission
- Step 2: Regulatory Approvals
- Step 3: Post-Approval
- Step 4: Listing
Altogether, the IPO process in Malaysia can take up to 56 weeks, which is around a little more than a year.
What is the difference between IPO advisory and equity advisory?
An IPO advisory, as the name suggests, is an advisory firm that helps companies and corporations through the IPO process. The IPO advisory will help them by providing an ‘end-to-end’ solution and strategies that a company/corporation might need throughout the IPO process.
Meanwhile, an equity advisory’s main objective is to analyze a company/corporation’s financial situation and provide them with the best investment options to help them gather more equity.
So this means that while both advisory firms deal with the equity capital of a company, an IPO advisory is more focused on the IPO process than a normal equity advisory.
What are the advantages of using an IPO consultancy services?
While the services of a professional IPO consultancy are necessary during the IPO process, there are also other advantages of using an IPO consultancy service;
- Allows for focus to stay on your company and its shareholders.
- Get expert advice on strategies and solutions on how to streamline your IPO process
- Help prepare all the documentation needed for your IPO process
- Provides post-IPO maintenance services
