Cost of Listing: Key Expenses in an IPO and Listing Process

Taking a company public is one of the most transformative milestones for Malaysian businesses. Beyond raising capital, an Initial Public Offering (IPO) enhances brand credibility, strengthens corporate governance, and unlocks long-term growth opportunities. 

Before stepping into the public markets, business owners must understand a crucial component of the IPO journey, and that is the cost of listing.

The IPO listing process in Malaysia involves regulatory reviews, professional advisory services, due diligence, underwriting, marketing, and ongoing compliance. Each stage comes with specific expenses, and understanding them early helps businesses plan realistically, avoid delays, and manage investor expectations.

This article breaks down the key costs of IPO listing in Malaysia, outlines what business owners should expect during the IPO process, and explains how the right advisory partner can help minimise unnecessary costs while ensuring compliance with Bursa Malaysia’s listing requirements.

Understanding the IPO Listing Process in Malaysia

Before exploring costs, it’s important to understand the core steps of the IPO process in Malaysia. A typical IPO journey includes:

• Pre-IPO readiness assessment
• Financial reporting enhancements
• Corporate governance restructuring
• Regulatory submissions to the Securities Commission Malaysia (SC) and Bursa Malaysia
• Due diligence exercises
• Prospectus preparation
• Book-building or share pricing
• Marketing and investor relations
• Listing and post-listing obligations

For a detailed overview of Bursa Malaysia’s listing requirements and procedures, refer to:
Bursa Malaysia Listing Requirements & IPO Process

Once companies understand the sequence, they can estimate the cost required for each stage more accurately.

Major Cost Components of IPO Listing in Malaysia

The cost of listing varies widely depending on company size, complexity, sector, and market board (Main Market vs ACE Market). Typically, the total cost may range from 5%–15% of total funds raised, depending on structure and advisory needs.

Below are the most significant cost categories:

1. Advisory and Professional Fees

During the IPO journey, companies require the support of several professional advisors. These are often the most substantial cost components.

a. IPO Advisory Fees

IPO advisors help assess readiness, improve governance, organise documentation, and manage the end-to-end process. Their involvement can significantly reduce delays and regulatory issues.

Services often include:

• IPO readiness assessment
• Internal controls review
• Corporate governance enhancement
• Risk management and compliance alignment
• Financial reporting improvements

Grant Thornton provides detailed IPO guidance in its publication:
Going Public: Transforming and Creating Value through IPO

b. Legal Fees

Legal advisors review corporate history, draft agreements, ensure compliance with the Capital Markets and Services Act (CMSA), the Listing Requirements, and other relevant Malaysian securities regulations or legislations, and support due diligence processes.

Fees depend on:

• Number of subsidiaries
• Historical transactions
• Complexity of shareholding structures
• Industry-specific regulatory requirements

c. Reporting Accountant Fees

Reporting accountants verify financial statements, conduct financial due diligence, and prepare the accountant’s report and pro forma report for inclusion in the prospectus.

These services include:

• Financial due diligence
• Review of historical financials
• Review of prospective financial information (if required)
• Agreed-upon procedures

Refer to Grant Thornton Malaysia’s IPO cost publication:
 Costs of an Initial Public Offering

d. Tax Advisor Fees

Tax advisors help manage tax risks, identify legacy liabilities, and ensure compliance with Malaysian tax laws.

2. Underwriting, Placement, and Issuance Fees

These costs relate to the process of selling shares to the public.

a. Underwriting Fees

Underwriters purchase shares from the company and resell them to investors. Fees vary based on:

• Market conditions
• Perceived risk of subscription
• Issue size
• Board listing (Main Market vs ACE Market)

Rates typically increase when market sentiment is weaker.

b. Placement Fees

For placements to institutional investors, placement agents charge fees based on the amount placed.

c. Brokerage and Clearing Fees

Brokerage firms charge fees for share distribution and retail investor participation.

3. Regulatory Fees and Listing Fees

These fees are levied by the Securities Commission Malaysia (SC) and Bursa Malaysia.

a. Securities Commission Fees

SC charges for:

• Prospectus registration
• Review and approval
• Lodgement fees

These fees are typically based on the size of the offering.

b. Bursa Malaysia Listing Fees

Bursa listing fees generally include:

• Initial listing fees
• Processing fees
• Annual listing fees (post-listing)

The cost varies depending on market capitalisation and board.

For benchmark reference, Bursa Malaysia outlines these fees publicly

4. Accounting, Financial Reporting, and Internal Control Costs

Companies undergoing an IPO often require significant upgrades to their finance and reporting functions.

Common cost areas include:

• IFRS/MFRS financial reporting conversion
• Historical financial statements restatements
• Internal control enhancement and improvements
• Implementation of audit trails and new governance processes
• Strengthening finance teams or hiring additional staff

IPO readiness assessments often highlight gaps that must be addressed prior to submission.

5. Due Diligence Costs

Due diligence is a core IPO requirement covering:

• Financial
• Legal
• Business
• Tax
• Operational
• Regulatory compliance

Each due diligence stream has associated costs depending on company complexity.

Comprehensive due diligence reduces regulatory issues and strengthens investor confidence.

6. Prospectus Preparation and Publication Costs

The IPO prospectus is one of the most important documents for public investors. Costs include:

• Drafting and reviewing the prospectus
• Printing and translation
• Graphic design and formatting
• Digital and physical distribution

Prospectus-related costs rise with issue size and complexity, especially if multiple languages or large-scale printing is required.

7. Marketing, Investor Relations, and Roadshow Costs

A successful IPO requires investor engagement and visibility.

Common marketing-related costs include:

• IPO roadshows (domestic and international)
• Investor presentations and pitch materials
• Media releases and PR campaigns
• Market research reports
• Digital marketing for retail investors

Companies often underestimate marketing costs, yet this stage is critical for generating investor demand.

8. Post-Listing Compliance and Ongoing Costs

After listing, companies must comply with continuing obligations, which include:

• Quarterly financial reporting
• Annual audits
• Corporate governance disclosures
• Investor relations management
• Internal audit costs
• Regulatory filings and submissions

These ongoing expenses form part of the company’s long-term commitment to transparency and accountability.

What Determines the Overall Cost of an IPO in Malaysia?

There are several factors that could influence the total cost:

1. Company Size and Market Capitalisation

Larger companies typically incur higher advisory and underwriting fees.

2. Choice of Market (Main Market, ACE Market or LEAP)

Main Market listings involve more extensive requirements, increasing advisory and compliance costs.

3. Industry Complexity

Regulated industries such as healthcare, finance, and energy require more legal and reporting work.

4. Number of Subsidiaries and Corporate Structure

More entities mean more due diligence and higher reporting costs.

5. Quality of Existing Financial and Governance Systems

Companies with mature systems incur lower pre-IPO transformation expenses.

6. Market Conditions

Underwriting fees rise when markets are uncertain.

Why Understanding IPO Costs Is Critical for Business Owners

Proper budgeting ensures:

• Smoother regulatory approvals
• Better investor communication
• Transparent disclosures
• Stronger financial planning
• Avoidance of unplanned delays

Companies that prepare early generally experience fewer compliance challenges and lower total listing costs.

How Grant Thornton Malaysia Supports Your IPO Journey

Grant Thornton Malaysia provides audit, Reporting Accountants and tax confirmation services to support businesses throughout their IPO journey. 

Explore their IPO resources here:

• Bursa Malaysia Listing Requirements & IPO Process
• Costs of an Initial Public Offering
• Going Public: Transforming and Creating Value Through IPO

With the right partner, businesses can avoid costly pitfalls, accelerate readiness, and enter the capital market with confidence.

Conclusion

The cost of listing on Bursa Malaysia is a significant but worthwhile investment—one that unlocks growth, creates shareholder value, and strengthens governance. Understanding the key expenses involved helps business owners prepare strategically and avoid surprises during the IPO journey.

With experienced like Grant Thornton Malaysia, companies can navigate the IPO process efficiently, manage listing costs wisely, and maximise long-term value creation. 
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