These relief measures provide flexibilities in fundraising and ease compliance for listed issuers.
Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) has announced additional relief measures to assist and support listed issuers in these trying and challenging times due to the COVID-19 pandemic. In this regard, the Exchange has announce that it has granted a further extension of time for listed issuers to submit its financial statements, accorded greater flexibility for fundraising through an increased general mandate limit for the new issue of securities, and provided additional relief to ease compliance to its rules.
These additional relief measures take cognisance of the policy actions by the Malaysian Government to mitigate the challenges surrounding the recovery on the businesses and operations of listed issuers. It forms part of the broad measures announced by the Exchange on 26 March 2020, to aid and facilitate market participants in sustaining their businesses.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said, “We acknowledge the unprecedented impacts arising from COVID-19 and the challenges experienced by listed issuers. Given the current circumstance, these temporary measures are intended to ease compliance by listed issuers and facilitate the fundraising for their working capital requirements in a timely and cost-effective manner. The temporary measures will also allow listed issuers to have a greater focus on prioritising their resources to overcome the economic and business challenges posed by COVID-19.”
Details of the relief measures are as follows:
Further extension of time to submit financial statements
Listed issuers are now granted an extension until 30 June 2020 for submission of the following:
(a) quarterly reports and annual reports by Main and ACE Market listed issuers and semi-annual and annual audited financial statements of LEAP Market listed corporations (“collectively “Financial Statements”) due by 30 April 2020, which was extended to 31 May 2020 via an earlier relief measure granted by the Exchange on 26 March 2020; and
(b) Financial Statements of Main, ACE and LEAP Market listed issuers due by 31 May 2020.
Notwithstanding the further extension of time, listed issuers are reminded to comply with their continuing disclosure obligations under the Listing Requirements including the obligation to make immediate announcements of any material information to ensure that shareholders and investors continue to receive information in a timely manner.
Increase in the general mandate threshold for new issue of securities to facilitate and expedite fundraising
A listed issuer can now increase the general mandate threshold for new issue of securities from the existing 10% to not more than 20% of the total number of issued shares (excluding treasury shares) (“20% General Mandate”) subject to compliance with
applicable legal requirements and its constitution as well as disclosure of its board of directors’ views that the 20% General Mandate is in the best interest of the listed issuer and its shareholders.
The 20% General Mandate must be approved by shareholders in a general meeting and may be utilised by the listed issuer to issue new securities until 31 December 2021. After that, the 10% limit under the Listing Requirements will be reinstated.
Relief to listed issuers with an unsatisfactory financial condition
A listed issuer that triggers certain criteria in Practice Note 17 (“PN17”) and Guidance Note 3 (“GN3”) (“Affected Listed Issuer”) of the Listing Requirements from 17 April 2020 to 30 June 2021, will not be classified as a PN17 or GN3 Listed Issuer and will be
accorded relief from complying with the obligations under paragraph/Rule 8.04 and PN17/GN3 of the Listing Requirements for a period of 12 months from the date of triggering the specified criteria (“12 month period”). The listed issuer will only be
required to make an immediate announcement that it has triggered the specified criteria and the relief provided.
If, after the 12 month period, the Affected Listed Issuer triggers any of the criteria in PN17 or GN3, it will be classified as such and must comply with all the obligations under paragraph/Rule 8.04 and PN17/GN3 of the Listing Requirements.
“We will continue to engage with capital market participants to provide additional focused solutions as deemed appropriate, that can allow them to navigate smoothly through the fast-shifting operating environment,” concluded Datuk Umar.
For more details on the relief measures, please visit www.bursamalaysia.com