Kuala lumpur: The Securities Commission Malaysia (SC) is identifying large unlisted Malaysian companies and encouraging them to consider dual listings in Malaysia and Hong Kong to broaden their access to international investors. SC chairman Datuk Mohammad Faiz Azmi stated that this initiative is part of the bourse's efforts to create more regional opportunities for Malaysian companies, particularly those seeking exposure to a wider pool of investors.

According to BERNAMA News Agency, Faiz highlighted that cooperation between Malaysia and Hong Kong facilitates the recognition of an initial public offering (IPO) prospectus issued and reviewed in Malaysia by Hong Kong authorities, eliminating the need for a separate prospectus. "We are looking at large non-listed companies in Malaysia and trying to target them by saying, 'wouldn't it be interesting if your IPO was also in Hong Kong at the same time?'" said Mohammad Faiz at the SC Penang Semicon Roadshow. This event, titled "Powering SemiCons: Financing Your Next Breakthrough," was aimed at encouraging companies to consider strategic dual listings.

Faiz emphasized that Hong Kong's acceptance of a Malaysian-reviewed prospectus reflects confidence in Malaysia's capital market regulatory framework. He explained that the arrangement could reduce complexity and costs for companies compared to preparing separate prospectuses for each market. The initiative aligns with the Capital Market Masterplan's goal of pursuing regional opportunities and helping Malaysian companies gain greater access to global investors.

Additionally, Faiz called on Malaysian semiconductor companies to consider the capital market as a source of financing to support growth, especially for investments in research and development, talent acquisition, equipment, and technological capabilities. He noted that traditional bank financing has limitations, particularly for companies requiring long-term capital or funding for innovative projects with longer gestation periods.

Mohammad Faiz suggested that companies could explore various financing avenues depending on their growth stage, including equity crowdfunding, peer-to-peer financing, venture capital, the equity market, and corporate bonds, to meet their financial needs.