Becoming a listed company is an important milestone for many businesses. When a company becomes listed, its shares can be bought and sold by the public on the stock market.
In Malaysia, companies that want to become publicly listed must meet the requirements set by
Bursa Malaysia and comply with regulations under Suruhanjaya Syarikat Malaysia (SSM).
Below is a simple step-by-step explanation of how companies usually become listed.
Step 1:
Convert the Company to a Public Company (Berhad)
A private company such as Sdn Bhd cannot be listed directly on the stock exchange.
The company must first convert into a public company (Berhad).
This involves changing the company structure and updating the company status with Suruhanjaya Syarikat Malaysia.
Step 2:
Meet Listing Requirements
Before applying for listing, the company must meet the listing requirements set by
Bursa Malaysia.
These requirements may include:
- Minimum profit or financial performance
- Corporate governance standards
- Minimum public shareholding
- Transparent financial reporting
Companies must prepare audited financial statements and corporate documentation.
Step 3:
Appoint Professional Advisors
Companies usually appoint professional advisors to assist with the listing process.
These may include:
- Investment banks
- Legal advisors
- Auditors
- Corporate advisors
These professionals help ensure the company meets regulatory and financial requirements.
Step 4:
Prepare for Initial Public Offering (IPO)
The company will prepare for an Initial Public Offering (IPO).
An IPO is when the company offers its shares to the public for the first time.
During this stage, the company prepares:
- Prospectus documents
- Financial disclosures
- Business information for investors
Step 5:
Apply for Listing Approval
The company must submit its listing application to Bursa Malaysia.
The authorities will review the company’s financial performance, governance, and compliance before granting approval.
Step 6:
Offer Shares to the Public
Once approved, the company can officially launch its IPO.
Investors can subscribe to the company’s shares before the company becomes publicly traded.
Step 7: Start Trading on the Stock Exchange
After the IPO process is completed, the company’s shares will begin trading on Bursa Malaysia.
From this point, the company becomes a listed company, and its shares can be bought and sold by the public.
Need Help Preparing Your Company for Listing?
Planning to grow your business and explore public listing opportunities? We’re here to help.
Our team can assist with company restructuring, documentation preparation, and compliance with requirements set by Suruhanjaya Syarikat Malaysia (SSM) and Bursa Malaysia.
Contact us today to make your company listing preparation simple and smooth.
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.
Step-by-Step Guide to Becoming a Listed Company in Malaysia