i) Prospectus and Share Application Form Distribution
Following the approval of the Securities Commission for an application for listing, a copy of the Prospectus relating to an IPO or Offer For Sale of securities will be registered with the SC. A copy of the prospectus will also be lodged with the Registrar of Companies at the Companies Commission of Malaysia.
An abridged version of the prospectus will be published in major newspapers. The prospectus will also be posted on the official website of the Bursa Malaysia Securities Bhd at www.bursamalaysia.com
Printed copies of the prospectuses and application forms and envelopes will be distributed by MIH to selected offices of all stockbrokers and certain banks for distribution to the investing public. The prospectuses and application forms and envelopes, which are distributed free of charge can also be obtained from MIH (Ground Floor, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya) or from the offices of the IPO Adviser, usually an investment bank.
ii) IPO Subscription Collection
Completed share application forms together with remittances mailed or couriered to MIH will be collected daily from the post office, courier delivery personnel or from the drop-in boxes located at the front of Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya.
Electronic Share Applications (ESA) and Internet Share Applications (ISA) are delivered to MIH via computer tapes or other IT media by all participating ESA banks and internet participating financial institutions after the closing date for subscription.
iii) Subscriptions Count
All application envelopes received are sorted into Bumiputera or non-Bumiputera categories (except for some ACE Market IPOs which do not require segregation) and also in terms of denomination of shares applied. Counting of applications is thereafter done. ESA and ISA applications will be electronically sorted into the required categories.
The subscription results are verified before internal and external audit checks are performed to ascertain accuracy of the count.
iv) Basis of Allotment / Balloting
The subscription results are presented to the Directors of the IPO Issuer for information purposes as well as to determine the basis of allotment of available shares via balloting in the event of oversubscription. In determining the number of successful applications to be balloted in each category, the Directors will give due consideration to fair distribution to a reasonable number of applicants to ensure a broadened shareholding base which will establish an adequate market in the trading of the shares to be listed. The minimum share spread required under the Listing Requirements of the Bursa Malaysia Securities Berhad will also be observed.
Having decided on the basis of allotment, balloting of successful applicants in each category of shares will be carried out. Using 2 sets of passwords, balloting is electronically done with the 7 digit random numbers assigned to each share application randomly picked by computer. Reserve applications representing about 10% of successful applications will also be balloted. The balloting is conducted in the presence of the Directors of the IPO Issuer and external balloting auditors, the only party with access to the balloting program.
The Securities Commission, Bursa Malaysia and the media are informed of the subscription and balloting results.
v) Post-ballot Processing
Successfully balloted application envelopes are retrieved and opened for verification. Bank drafts are checked for correct payee name and amount while the application forms are checked for completeness. Retrieval and processing of successfully balloted application envelopes are conducted in a closed environment under the supervision of internal and external auditors.
Processed application forms are then sent for data input and thereafter sent to the Bursa Malaysia Depository Sdn Bhd for verification of successful applicants' personal details and Central Depository System (CDS) account numbers. Any share applications rejected during processing or Bursa Malaysia Depository Sdn Bhd verification will be replaced by a ballot of the reserved applications.
Upon full and final acceptance of all data sent to Bursa Malaysia Depository Sdn Bhd for verification, the CDS accounts of all successful applicants are credited. Notices of allotment are sent to applicants informing them of the number of shares allotted and the CDS account in which the shares are credited. Refunds for partially successful applicants who have registered cash dividend/distribution bank account, with Bursa Malaysia will be affected electronically. Refund cheques in respect of partially successful applicants for those who have not registered cash dividend/distribution bank accounts with Bursa Depository are sent by registered mail.
The Bursa Malaysia Depository Sdn Bhd's confirmation that all relevant CDS accounts have been credited, the shareholders' spread analysis and a confirmation that all notices of allotment would be despatched before listing, are sent to the Bursa Malaysia prior to listing.
Listing takes place on the date requested by the IPO Issuer and approved by the Bursa Malaysia.
The proceeds of the IPO are released to the IPO Issuer to conclude the listing exercise.