Bursa Malaysia, Malaysia’s stock exchange, offers three distinct listing platforms – Main Market, ACE Market, and LEAP Market – each catering to companies at different stages of growth. For companies considering an Initial Public Offering (“IPO”) in Malaysia, understanding these markets’ specific requirements is crucial for successful listing preparation.
Overview of Initial Public Offering Listing Criteria for the Bursa Malaysia Markets
While all three listing platforms provide access to capital markets, they have different listing criteria based on a company’s size, financial strength, and business maturity.
| Criteria | Main Market | ACE Market | LEAP Market |
|---|---|---|---|
| Profit Track Record | Required (RM20m aggregate profit) | Not applicable | Not applicable |
| Market Capitalization | RM500m (if using Market Cap Test) | Not applicable | Not applicable |
| Public Shareholding Spread | 25% & ≥ 1,000 shareholders | 25% & ≥ 200 shareholders | 10% |
| Sponsor / Adviser | Not required after listing | Sponsor required for 3 years post-listing | Adviser required 3 years post-listing |
| Investor Access | Open to all investors | Open to all investors | Sophisticated Investors only |
Main Market: Premium IPO Platform for Established and Profitable Companies
The Main Market is designed for large and well-established companies that have a proven profitability record or significant market capitalization. It’s the premier board, attracting both local and international investors.
Key Listing Requirements:
1. Profit Test / Market Capitalization Test / Infrastructure Project Test:
- Profit Test: Aggregate after-tax profit of at least RM20 million over 3–5 financial years, with at least RM6 million in the most recent financial year.
- Market Capitalization Test: Minimum RM500 million market capitalization and revenue in the most recent financial year.
- Infrastructure Project Test: For companies undertaking long-term infrastructure projects (≥15 years concession lifespan and costs of not less than RM500 million).
2. Public Shareholding Spread:
- Minimum 25% of shares held by public shareholders.
- At least 1,000 public shareholders holding not less than 100 shares each.
3. Management Continuity and Capability:
- Continuity of substantially the same management for at least 3 full financial years prior to submission
4. Sponsorship:
- No ongoing sponsor required post-listing.
ACE Market: For Growth-Oriented, Emerging Companies Seeking IPO
The ACE Market is a sponsor-driven platform that targets startups and fast-growing businesses that may not yet meet the profitability or size thresholds of the Main Market.
Key Listing Requirements:
1. No Minimum Profit or Track Record Requirement:
- Companies are evaluated based on future growth potential.
2. Sponsor Requirement:
- Must appoint an Approved Sponsor to oversee the listing process.
- The sponsorship is required for at least 3 financial years post-listing.
3. Management Continuity and Capability:
- Continuity of substantially the same management for at least 3 full financial years prior to submission or since its incorporation
4. Public Shareholding Spread:
- Minimum 25% public shareholding.
- At least 200 public shareholders holding not less than 100 shares each.
LEAP Market: IPO Platform for Small and Medium Enterprises (“SMEs”)
The LEAP Market (Leading Entrepreneur Accelerator Platform) is a platform exclusively designed for Small and Medium Enterprises (“SMEs”), providing them easier access to capital without the heavy regulatory burden of other boards. Only sophisticated investors (e.g., high-net-worth individuals, institutions) can invest in LEAP-listed companies.
Key Listing Requirements:
1. No Profit Record or Track Record Required:
- No minimum profitability or operational history requirement.
- Focus on SMEs that want to raise growth capital.
2. Sponsor Requirement:
- Companies must appoint an Approved Adviser for listing.
- Secure and maintain a Continuing Adviser for at least 3 financial years post-listing.
3. Public Shareholding Spread:
- No strict minimum number of public shareholders.
- Flexibility because investors are sophisticated.
4. Investor Restrictions:
- Open only to Sophisticated Investors, not the general public.
Choosing Your Ideal Listing Platform for IPO Preparation
- Main Market: Best for large, profitable companies aiming for broad investor exposure and strong branding.
- ACE Market: Ideal for high-growth companies that may not yet have an extensive financial track record.
- LEAP Market: Perfect for SMEs wanting quicker access to capital from qualified investors without the heavy burden of regulations.
Each platform offers distinct advantages based on a company’s business stage and strategic vision. Choosing the right one is crucial to optimizing capital raising, investor relations, and long-term success.
At CNP, we understand that each company’s IPO preparation journey is unique. Our experienced team offers tailored guidance on IPO readiness, from initial assessment through strategic planning and compliance support. Contact us to discuss your IPO aspirations and explore the most suitable listing platform for your business.
