Hong Kong and Malaysia unveils simplified dual IPO listing framework

The Securities and Futures Commission and Securities Commission Malaysia on Wednesday unveiled simplified regulatory procedures to facilitate simultaneous listings in Hong Kong and Malaysia.

The Single Submission Arrangement operationalizes the simplified dual initial public offering listing framework under the Memorandum of Understanding signed by the two regulators on July 23.

Applicants seeking a primary listing on either the Stock Exchange of Hong Kong Main Board or Bursa Malaysia's MAIN Market, plus a simultaneous secondary listing on the other, need only submit a single listing application and document.

This approach is expected to reduce regulatory duplication and compliance costs at the IPO application stage.

Key features of the simplified dual listing framework include:

• Single Listing Document: Applicants may rely on one listing document to meet the statutory and listing requirements of both markets.
• Single Application Submission: Applicants seeking a simultaneous dual listing in Hong Kong and Malaysia may submit a listing application through a centralised, coordinated submission, removing the burden of separate submissions in both markets.
• Dedicated Dual-Listing Review Teams: Both regulators have established dedicated teams and communication channels to serve as direct contact points for applicants and their advisers. This ensures coordinated regulatory oversight, active case management and seamless cross-agency handling throughout the listing process.
• Coordinated Regulatory Review: The SFC, SEHK and SC have established coordinated review processes to align timelines, minimising duplication and streamlining queries to applicants.

"By establishing a clear, accessible pathway and harmonised regulatory processes, we enable businesses in both markets to reach more diverse international investors and deeper pools of capital, while preserving robust investor protection," said Julia Leung, Chief Executive Officer of the SFC.

“Connecting Malaysia with Hong Kong, the world’s third largest global financial centre, will further strengthen the attractiveness of both markets as investment destinations,” said SC Chairman Dato' Mohammad Faiz Azmi.

Hong Kong Exchanges and Clearing’s (0388) head of listing Katherine Ng also welcomes the simplified dual IPO listing framework. She said by providing a more streamlined and coordinated pathway for dual-listing applicants, the framework will broaden companies’ access to capital and investors across both markets.
 

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