The myth behind the 30% thingy
By Lee Wee Tak
I applauded the bold move by Najib on the economic reforms. Of course the most telling change is that the 30% bumiputra quota requirement for companies seeking to list on the Bursa Malaysia has been done away.
However, I wonder what you make of this.
"…..All Malaysian companies seeking listing would have to offer 50% of their public offering to bumiputra investors, which would work out to 12.5% of the total stake;…."
To me it means the promoters only (i.e. the entrepreneurs seeking to list the companies; usually they develop the business to a size sufficient to qualify for listing) are able to reap the benefits of deregulation. Typical of BN policies as it benefits the privileged minority.
However, for the non-bumi man, woman and tengah-tengah in the street, their chances of succeeding in IPO application is immediate cut down by 50% “officially” as compared to previously, no such limiting of their “official” chances because before this, public offering is public offering.
The 12.5% quoted above assumes the IPO company is offering 25% for public floatation. If, however, the company decide to offer either 40%, 50% or 70% for public, then the bumi quota will be 20%, 25% or 35% respectively.
Read more at: http://wangsamajuformalaysia.blogspot.com/2009/07/myth-behind-30-thingy.html
