KUALA LUMPUR (Dec 23): Bursa Malaysia Bhd has announced a 12-month extension of the 20% general mandate for the issue of new shares via private placement.
It is also giving a similar extension to the 50% general mandate based on a pro-rata entitlement for new issue of shares by way of rights issue.
Both mandates, which would have expired on Dec 31, 2021, are now valid until Dec 31, 2022, the stock exchange operator said in a statement.
“This extension is in line with Bursa Malaysia’s commitment to assist listed issuers to address their funding needs and working capital requirements by easing compliance and facilitate secondary fundraising,” the statement read.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the exchange operator acknowledges the unprecedented lingering impact of Covid-19 on listed issuers.
“It is imperative for listed issuers to be able to raise funds through the secondary market in an expedient, efficient and cost-effective manner during these challenging times,” he said.
The 20% general mandate previously announced on April 16, 2020 will be extended until Dec 31, 2022 for listed issuers that have not raised any funds using the 20% mandate in 2020 or 2021, said Bursa Malaysia.
The issuers, it said, will be subjected to the same prescribed conditions (e.g. procuring shareholders’ approval for the 20% general mandate at a general meeting, complying with all applicable legal requirements including the constitution and disclosing views from the board of directors that the 20% general mandate is in the best interest of such listed issuers and their shareholders as well as the basis for such views).
Similarly, the validity of the pro-rata 50% general mandate announced on Nov 10, 2020 is being extended until Dec 31, 2022.
“An eligible listed issuer may issue rights securities on a pro-rata basis using this mandate, subject to compliance with the same conditions as imposed earlier,” the statement said.
“Additionally, the pro-rata 50% general mandate can now be utilised to issue a combination of ordinary shares/units and convertible equity securities, instead of just ordinary shares/units previously, as part of the rights issue exercise,” it added.
The general mandate offered an expedited process for rights issue exercises, enabling the issuers to be more agile as they can raise funds from their existing shareholders in a shorter time frame to meet their capital and financial needs.
Under the expedited process, the issuers are granted greater flexibility to manage market uncertainties while making capital calls, and fast-track secondary fundraising, subject to certain safeguards.