KUALA LUMPUR: Bursa Malaysia Securities Bhd has issued amendments to the ACE Market listing requirements with regards to the transfer of listing framework from the LEAP Market.
Under the new LEAP Market Transfer Framework, a public-listed company (PLC) must have been listed on the LEAP Market for at least two years to be assessed and considered suitable for listing on the ACE Market by a sponsor.
The stock exchange operator added that a transfer application must demonstrate that there is a clear and transparent price discovery mechanism in place.
It said this was to demonstrate the fairness and reasonableness of its issue price pursuant to its transfer to the ACE Market.
Additionally, a transfer applicant must retain the services of a sponsor for two full financial years following its admission to the ACE Market.
"This is to guide and advise the transfer applicant on its continuous compliance with the ACE listing requirements and other regulatory requirements post listing," said Bursa in a statement.
Meanwhile, Bursa said the enhanced ACE Market listing requirements also enable eligible approved advisers to play a role in the ACE Market.
Pursuant to a newly introduced recognised approved adviser framework, an approved advisor that has completed three initial listings on the LEAP Market with at least one qualified person may seek the Exchange’s approval to act as a recognised approved adviser.
"With the expansion of the pool of sponsors/advisers in the ACE Market to include the recognised approved advisers, a transfer applicant may choose to continue working with its approved adviser, or secure the services of any other existing sponsor/adviser from the ACE Market, in a cost effective and efficient manner.
"Further, the expansion will propel capacity building of recognised approved advisers through the exposure and experience gained on the ACE Market," said Bursa.
Bursa Malaysia chief regulatory officer Julian Hashim said the amendments will open up opportunities for SMEs to have greater access to the capital market and provide a clearer roadmap for LEAP companies aiming to list on the ACE Market.
"Established SMEs on the LEAP Market can now progress to the next stage of their growth by tapping into the wider investor space on the ACE Market.
“Additionally, the recognised approved advisor framework will enhance and provide more avenues for the participation of corporate finance professionals in the Malaysian capital market,” he added.
Since its inception, the companies listed on the LEAP Market raised a total of approximately RM231.2mil through initial listings.
As at March 29, 2023, the market capitalisation of the entire LEAP market stands at RM5.5bil, with 48 companies listed on the LEAP Market.
