KUALA LUMPUR, Nov 12 – The government today relaxed the 30 per cent bumiputera equity ownership for companies seeking to be listed but have yet to fulfil the quota requirement.
Deputy Prime Minister Datuk Seri Najib Tun Razak said the relaxation, which would take effect immediately, was to ensure that the Malaysian capital investment market stays progressive and competitive.
He said that the companies concerned had to take specific steps and under the reorganisation, needed to heed the conditions of the National Development Policy (NDP) while continuing to offer the shares to institutions and bumiputera investors approved by the Ministry of International Trade and Industry.
He said, however, that the shares that were not subscribed could be offered to other bumiputeras as part of the share voting process.
“I wish to stress that the 30 per cent Bumiputera equity participation at the point of listing will continue to be enforced. However, there will be a slight change in terms of the methodology,” he told reporters after visiting the Securities Commission (SC) here today.
“This means that more individual bumiputeras could apply for the shares concerned. If the shares offered to individual bumiputeras are still not fully subscribed, then the company concerned is deemed to have fulfilled the 30 per cent bumiputera equity,” he said.
Asked whether this move would jeopardise the effort to attain 30 per cent bumiputera equity overall, he said the action would allow other bumiputera individuals to participate and take up the public balloting.
“There are two tiers. After the two cuts, if the shares are still not taken up, it is only fair to allow the companies to be listed. Otherwise, there will be a huge uncertainty for them,” he said.
The SC chairman Datuk Seri Zarinah Anwar said to date, seven companies had yet to fulfil the share ownership conditions.
The SC chairman Datuk Seri Zarinah Anwar said to date, seven companies had yet to fulfil the share ownership conditions.
She said these companies’ representative had met the SC and had been given time to fulfil the condition.
“The share prices of these companies today have gone below their IPO pricing. Of course, it does not make sense then to compel bumiputeras to subscribe as they will be able to buy the shares cheaper from the market,” she said. – Bernama
1 comment:
“The share prices of these companies today have gone below their IPO pricing. Of course, it does not make sense then to compel bumiputeras to subscribe as they will be able to buy the shares cheaper from the market,” she said.
Right, the entrepreneurs take the risk, and the bumiputra leeches want sure-fire deals?
Ketuanan Melayu, you say? Sheesh.
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