Senior Vice President of KLSE, Abdul Hamid Sh. Mohamed said the new MESDAQ Market has something of benefit for everyone.
"As part of KLSE Group, the new MESDAQ Market will be in a strategic position to enhance its capability as an efficient, cost-effective and competitive capital generating mechanism for technology and high growth companies," he said at a media conference.
KLSE and MESDAQ - Malaysian Exchange of Securities Dealing & Automated Quotation Bhd - signed the agreement for MESDAQ to join the KLSE Group on 31 December 2001.
Abdul Hamid said the merger is not only consistent in meeting the objectives for efficiency and competitiveness, it is necessary to ensure viability and sustainable growth to move forward into the future. He said upon completion of the merger, MESDAQ will cease business as an exchange and the new MESDAQ Market will be launched by KLSE.
The advantages of the new MESDAQ Market for its key target groups include:
- For members of KLSE and MESDAQ, there will be no change in membership and no additional licensing requirements to access the KLSE Main Board, Second Board and the MESDAQ Market. With systems integration, there will be a common platform for operations and trading for KLSE and the MESDAQ Market.
- For listed issuers on MESDAQ, there will be no change in listing status and minimal disruption to trading in the transfer to the MESDAQ Market. Listed issuers on the new MESDAQ Market are expected to benefit from greater investor interest and liquidity with the expanded network of members and dealer representatives. Potential issuers are in a strategic position to capitalise on the enhanced members' network and systems integration by listing on the new MESDAQ Market.
- For investors, there is immediate improved accessibility from 16 to 47 members and from 1,000 to over 7,000 dealer representatives. With improved accessibility, there will be greater liquidity for investors of technology and high growth companies already listed. There will also be greater opportunity for investors to participate in value investing with greater interest to list technology and high growth companies.
"The MESDAQ Market at KLSE will continue to preserve and enhance the market for technology and high growth companies thus improving accessibility and ensuring business continuity and growth for all members of KLSE and MESDAQ," he said.
The Proposed Merger of MESDAQ with KLSE was approved by the members of the KLSE at an Extraordinary General Meeting (EGM) held earlier this morning.
