Wednesday, 19 July 2017

Bursa Malaysia Listing Requirements Highlights

Bursa Malaysia has announced a new market namely Leading Entrepreneur Accelerator Platform (LEAP) on 15 June 2017 (Read more here).   The Chief Executive Officer of Bursa Malaysia, Datuk Seri Tajuddin Atan said that the LEAP market complemented both the Main Market and ACE Market by addressing the funding gap faced by small and medium-sized enterprises (SMEs).



As a general rule of thumb, large companies that have paid-up capital more than RM50 million could seek listing on the Main Market, while fast growing companies that have paid-up capital approximately RM5 million to RM10 million may seek for listing on ACE Market.  For a smaller company, based on our understanding, a paid-up capital of RM2 million is suitable for the LEAP Market.
  


Additional listing requirements such as “Profit Test”, “Market Capitalization Test” or “Infrastructure Project Corporation Test” is mandatory for listing on Main Market while there is no strict test requirement for listing on ACE or LEAP Market.  The highlights of the Main Market tests are as follows:




  
There are also Bumiputera Investors participant recommendation on best effort basis as highlighted below.




Additional requirements highlight such as financial position and liquidity, management continuity and capability are as follows:






Companies or entrepreneurs who are interested to list their business on Bursa are required to appoint Advisers or Sponsors as part of the listing process.  For Main Market, Principal Adviser is required while for ACE Market, a Sponsor is required.  For LEAP Market, an Approved Adviser is required during the initial listing activities and/ or post-listing activities.  The company must appoint Continuing Adviser for post-listing activities.



To list your business on Bursa Malaysia, the following documents for pre-admission consultation work are required:

n  Last 5 years audited financial statements;
n  Latest management accounts;
n  Net profit forecast and projection for the next 3 years (rough estimation)
n  Estimated funds size required and expected utilisation of proceeds, e.g. for capital expansion, working capital requirements, details of potential acquisition, etc; and
n  Company profile and its shareholding structure

For more information about listing requirements, please visit http://www.mpcap.com.my/ or contact info@mpcap.com.my.

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