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SC INTRODUCES ACCELERATED TRANSFER OF LISTING FROM ACE MARKET TO MAIN MARKET FOR ELIGIBLE ACE MARKET COMPANIES (NEW)

13 December 2023 

The Securities Commission Malaysia (SC) today introduced an accelerated transfer process to facilitate the promotion of eligible ACE Market public listed companies (PLCs) to the Main Market of Bursa Malaysia.

The framework will take effect on 1 January 2024 through amendments to the Equity Guidelines.

The SC Chairman, Dato’ Seri Dr. Awang Adek Hussin said, “The ACE Market has remained a significant source of financing within the Malaysian equity capital market, with 20 ACE Market listings raising RM1.26 billion through initial public offerings as of October this year.”

“This accelerated transfer process will benefit sizeable, qualified ACE Market PLCs by accelerating the transfer to the Main Market for greater visibility and access to a larger pool of investors, including foreign and institutional investors,” he said.

Transferring to the Main Market, which is the prime market for established companies, demonstrates that the ACE Market PLCs have achieved the standards in terms of quality, size and operations.

Under the new accelerated transfer process, an ACE Market PLC must, among others, have a daily market capitalisation of at least RM1 billion for the past six months, and meet the profit requirements for companies seeking listing on the Main Market.

The revised Equity Guidelines that will facilitate the transfer are available at https://www.sc.com.my/regulation/guidelines/equity.

SECURITIES COMMISSION MALAYSIA

Source: https://www.sc.com.my/resources/media/media-release/sc-introduces-accelerated-transfer-of-listing-from-ace-market-to-main-market-for-eligible-ace-market-companies

BURSA MALAYSIA INTRODUCES NEW TRANSFER OF LISTING FRAMEWORK FROM LEAP MARKET TO ACE MARKET

31 Mar 2023 

Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today issued amendments to the ACE Market Listing Requirements (“ACE LR”) in relation to the transfer of listing framework from the LEAP Market to the ACE Market (“LEAP Market Transfer Framework”), which will facilitate eligible LEAP Market listed corporations to graduate to the ACE Market.

The amendments also include the introduction of a recognised approved adviser framework (“Recognised Approved Adviser Framework”), which will expand the pool of Sponsors/Advisers in the ACE Market in respect of the transfer of listings and permitted corporate exercises.   

“Bursa Malaysia is pleased to introduce this new transfer of listing framework, to increase the accessibility and attractiveness of our equities market. The Exchange will continue to pursue efforts to better serve our purpose as an important avenue for companies to raise funds. With these amendments, we look forward to a more vibrant LEAP and ACE Markets,”

said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia Berhad.   

The LEAP Market was launched on 25 July 2017 as a qualified market accessible only to sophisticated investors. Overall, the establishment of the LEAP Market has been well received, as it provided greater opportunity to small and medium sized enterprises (“SMEs”) to access capital, while increasing their visibility and profile through their status as a public listed company (“PLC”).

Since its inception, the companies listed on the LEAP Market raised a total of approximately RM231.2 million through initial listings. As at 29 March 2023, the market capitalisation of the entire LEAP market stands at RM5.5 billion, with 48 companies listed on the LEAP Market. 


LEAP Market Transfer Framework 

Under the new LEAP Market Transfer Framework, to qualify for a transfer of listing: -

It is also imperative for a transfer applicant to demonstrate there is a clear and transparent price discovery mechanism in place, to demonstrate the fairness and reasonableness of its issue price pursuant to its transfer to the ACE Market.  

Concurrent with the application for a transfer of listing, a transfer applicant must apply to withdraw its listing from the LEAP Market and accord to its shareholders an exit offer, or any other alternative exit mechanism, which is equitable to them. A transfer applicant will only be delisted from the LEAP Market upon its successful transfer and listing on the ACE Market.    

A transfer applicant must retain the services of a Sponsor for two full financial years following its admission to the ACE Market, or one full financial year after it has generated operating revenue, whichever is the later.

This is to guide and advise the transfer applicant on its continuous compliance with the ACE LR and other regulatory requirements post listing.

The amendments take effect on 1 April 2023. 

Source:

https://www.bursamalaysia.com/bm/about_bursa/media_centre/bursa-malaysia-introduces-new-transfer-of-listing-framework-from-leap-market-to-ace-market

TAX DEDUCTION ON COST OF LISTING IN BURSA MALAYSIA

24 February 2023

Currently, tax deduction of up to RM1.5 million is given on expenses incurred by technology based companies for listing in Access, Certainty, Efficiency (ACE) Market and by MSMEs in the Leading Entrepreneur Accelerator Platform (LEAP) Market. The qualifying expenses are as follows:

It is proposed that the tax deduction be reviewed as follows:

This proposal aims to encourage more listing of technology based companies and MSMEs in Bursa Malaysia.

Source: Malaysian Budget 2023 (24 February 2023)

BURSA MALAYSIA BECOMES ONE-STOP CENTRE FOR ACE MARKET IPOS AND PROSPECTUS REGISTRATION

20-Dec-2021

The Securities Commission Malaysia (SC) and Bursa Malaysia Securities Berhad (the Exchange) announced today that the Exchange will be the sole approving authority for ACE Market Initial Public Offerings (IPOs), effective 1 January 2022.

Under the new regulatory framework, the Exchange will become a one-stop centre for all ACE Market IPO approvals. This would also include the registration of abridged prospectus for the purpose of secondary fund raising activities via rights issues by corporations listed on the ACE Market.

“The streamlining of the listing process and regulatory framework for the ACE Market is part of the SC’s initiatives under the five-year Capital Market Masterplan 3 to enhance fundraising efficiency for Malaysian corporations at various stages of growth,” said Datuk Syed Zaid Albar, SC Chairman. “More importantly, corporations seeking listing on the ACE Market would benefit from a seamless listing process while upholding the same level of investor protection.”

“These new IPO rules will improve the efficiency and efficacy of the ACE Market IPO process, providing a more facilitative regime for companies who are seeking to list on the Exchange.” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “The ACE Market facilitates eligible corporations, especially the small and medium-sized corporations to meet their funding needs through IPOs in an efficient, sustainable and cost-effective manner.”

Source: https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5c11a9db758f8d31544574c6/61c0576939fba279d6cd153e/files/_ENG__Dec20_2021_Bursa_Malaysia_Becomes_One-Stop_Centre_For_ACE_Market_IPOs_And_Prospectus_Registration.pdf?1639997420