Bursa Malaysia Securities has issued amendments to the ACE Market Listing Requirements in relation to the transfer of the listing framework from the LEAP Market to the ACE Market, 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 which will expand the pool of Sponsors/Advisers in the ACE Market in respect of the transfer of listings and permitted corporate exercises. This the Exchange said is to increase the accessibility and attractiveness of the equities market.
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.
Under the new LEAP Market Transfer Framework, to qualify for a transfer of listing, a PLC must have been listed on the LEAP Market for at least two years, be assessed and considered as suitable for listing on the ACE Market by a Sponsor, and undertake a public issue of shares on the ACE Market. 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 later. This is to guide and advise the transfer applicant on its continuous compliance with the ACE LR and other regulatory requirements post-listing.
An approved Adviser 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.
A Recognised Approved Adviser may act as an adviser in a transfer of listing application jointly with a Sponsor, for the transfer applicant who had acted either as a listing adviser or continuing adviser on the LEAP Market. The Recognised Approved Adviser may also serve as a replacement Sponsor.
Bursa said the Advisor Framework will enhance and provide more avenues for the participation of corporate finance professionals in the Malaysian capital market. The amendments take effect on 1 April 2023.
