PETALING JAYA: In a bid to boost the competitiveness of Bursa Malaysia’s ACE Market, the exchange is seeking public feedback on various enhancements to the listing requirements.
It aims to promote a more transparent framework, with greater clarity on the admission criteria. In a statement, Bursa said the public consultation paper is also to ensure that the ACE Market remains attractive and competitive as a listing and investment platform.
There are 108 companies listed on Bursa’s ACE Market. In the past year, the FBM ACE index had seen a 14.67% rise to 6,507.89 points. Comparatively, the FTSE Bursa Malaysia KLCI, or FBM KLCI, had risen 1.45% to 1,818.38 points as of Nov 18.
The changes proposed include clarifying the admission criteria and suitability assessment to be undertaken by a sponsor with additional guidance.
Bursa has proposed to introduce a new pre-initial public offering consultation procedure for ACE Market applicants, which will allow applicants to seek guidance on the admission requirements at an early stage.
To enhance disclosure on the applicant, Bursa has also proposed that new applicants be required to have an independent market research report supporting the listing application.
It also intends to liberalise the moratorium requirements for eligible promoters, and shorten the moratorium period for promoters of listed corporations, which are eligible to list on the Main Market.
The bourse has proposed to exempt listed corporations, which have met the Main Market admission criteria from the sponsorship requirement post-listing.
To ensure quality and parity in the standards of disclosure, the exchange will also pre-vet selected circulars prior to their issuance to shareholders.
Another proposal is to liberalise the sponsorship framework by removing the requirement for sponsors to approve public documents and allowing a change of sponsors without the exchange’s prior approval.
The predecessor to the ACE Market, the Mesdaq Market, evolved into the former when the Main and Second Boards merged to become the Main Market on Aug 3, 2009.
Bursa is seeking comments and feedback from the investing community, practitioners and market participants on the proposed enhancements to the ACE Market listing requirements by Dec 22.
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