Selling New Shares in a Sdn Bhd

Learn how a Sdn Bhd can raise capital by issuing new shares and what business owners need to know.
March 2, 2026 by
Selling New Shares in a Sdn Bhd
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh

A Simple Guide to Raising Capital for Private Companies in Malaysia

Selling new shares is one of the most common ways for a private company (Sdn Bhd) to raise funds without taking loans. This guide explains what new shares are, why companies sell them, and how it works in Malaysia.

What Are New Shares?

New shares are additional shares issued by a company and sold to investors.

When a company issues new shares:

  • The company receives fresh capital
  • The total number of shares increases
  • Ownership is shared with new or existing investors

In a Sdn Bhd, shares are usually offered privately and not to the general public.

Why Do Companies Sell New Shares?

1. Raise Business Capital

  • Companies can get funding without borrowing money or paying interest.

2. Expand the Business

  • Funds can be used for expansion, hiring, or entering new markets.

3. Bring in Strategic Partners

  • New investors may provide experience, networks, or business opportunities.

4. Improve Cash Flow

  • Selling shares helps strengthen financial stability.

5. Avoid Debt Risk

  • Unlike loans, shares do not need repayment.

What Documents Are Needed to Sell New Shares?


1. Board Resolution

  • Approval from directors to issue new shares.

2. Shareholders’ Approval

  • Existing shareholders must approve the share issuance.

3. Subscription Agreement

Agreement between the company and the investor.

4. Share Allotment Documents

  • Details of how many shares are issued and to whom.

5. Updated Share Register

  • Company records must be updated with new shareholders.

6. Filing with SSM

  • The company must submit the share issuance toSuruhanjaya Syarikat Malaysia (SSM) for official records.

Sdn Bhd vs Berhad (Key Difference)


Sdn Bhd (Private Company)

  • Cannot sell shares to the public
  • Limited number of shareholders (up to 50)
  • Shares are privately negotiated

Berhad (Public Company)

  • Can sell shares to the public
  • Can be listed on the stock exchange
  • Higher regulatory requirements
  • Requires stricter compliance and disclosure

This means Sdn Bhd is more flexible but has limited fundraising power compared to Berhad.

Need Help Issuing New Shares for Your Sdn Bhd?

If you are planning to issue new shares but are unsure about the process, documentation, or compliance requirements, our experienced team is here to help.

We can assist with share structuring, documentation, SSM filings, and ensuring your share issuance is done correctly and legally.

Contact us today to simplify your share issuance process and grow your business with confidence.

Contact Us


Advisor

Jeffrey Eh Hao Yih , Director 

Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.

Selling New Shares in a Sdn Bhd
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh March 2, 2026
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