KL sets rules for listing new projects<\/p>\n
KUALA LUMPUR (AFP): Malaysia's Securities Commission said
\nSaturday only firms developing major projects in the country
\ncould be listed on the local bourse without a track record, as
\nthe government announced moves to liberalize the capital market.<\/p>\n
Deputy Prime Minister Anwar Ibrahim said Thursday that
\ncompanies managing huge infrastructure works in Malaysia would be
\nallowed to float their shares on the Kuala Lumpur Stock Exchange
\n(KLSE) as long as their cash flow was strong.<\/p>\n
But Securities Commission chairman Munir Majid said Saturday
\nthat the companies must be able to prove that their earnings
\ncould give a suitable rate of return to shareholders.<\/p>\n
\"High standards of due diligence would be imposed on the
\ncompany, its management, the advisers and experts, whose
\nrepresentation would be relied upon in the assessment of the
\nproject,\" Munir said in a statement.<\/p>\n
One of the biggest infrastructure projects in Malaysia
\ncurrently is the development of the nine-billion-ringgit (US$3.6-
\nbillion) Kuala Lumpur International Airport.<\/p>\n
Others include the central redesigning of the Malaysian
\ncapital under a five-billion-ringgit project dubbed the Kuala
\nLumpur City Center and a 1.1-billion-ringgit city rail system
\ncalled the Light Rapid Transit.<\/p>\n
None of the projects is listed under its respective entity,
\nalthough shares of some Malaysian companies engaged in them are
\ntraded on the KLSE.<\/p>\n
Munir said the Securities Commission had drafted a new set of
\nguidelines for listing firms undertaking major projects in
\nMalaysia, but did not give details.<\/p>\n
\"Since the projects would not have the earnings track record,
\nthe SC would be concerned about (their) future cashflows and
\nrisks,\" Munir said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-sets-rules-for-listing-new-projects-1447893297",
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"sponsor": "Okusi Associates",
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