PETALING JAYA: Bursa Malaysia is seeking public feedback on the proposed framework for transfer of listings from the LEAP Market to the ACE Market.
Under the proposed framework, a LEAP Market company can only transfer listing into the ACE Market if it has been listed for at least two years on the LEAP Market.
The company should meet “the suitability assessment by a sponsor” under the ACE Market Listing Requirements. It should have also completed its business plan as well as fully utilised the proceeds raised from its listing on the LEAP Market.
In addition, the LEAP company must make concurrent application for transfer of listing to the ACE Market and withdrawal of listing from the LEAP Market, and comply with the existing requirements and procedures for admission to the ACE Market.
There must also be a clear price discovery mechanism that has been put in place for the shares to be transferred to the ACE Market.
The new framework was proposed as LEAP Market-listed companies have over the years grown in terms of size and profitability to qualify into the ACE market
“In this regard, the exchange proposes to formalise the LEAP Market transfer framework to facilitate the transfer of eligible listed corporations from the LEAP Market, which is a qualified market accessible to only sophisticated investors, to the ACE Market which offers a more robust listing environment and is open to the public,” according to Bursa Malaysia.
It added the proposed LEAP Market transfer framework is underpinned by two main regulatory principles.
Firstly, there is no regulatory arbitrage on the standards and quality of corporations listed on the ACE Market.
Secondly, there will be adequate disclosure of the business, financial condition, management and other matters pertaining to the transfer applicant for informed investment decision making by investors.