KUALA LUMPUR: Bursa Malaysia Securities Bhd (Bursa Malaysia) yesterday 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 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.
Chief executive officer Datuk Muhamad Umar Swift said Bursa Malaysia is pleased to introduce this new transfer of listing framework to increase the accessibility and attractiveness of Malaysia’s 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,” he said in a statement yesterday.
The LEAP Market was launched on July 25, 2017 as a qualified market accessible only to sophisticated investors.
Since its inception, the companies listed on the LEAP Market raised a total of RM231.2 million through initial listings.
As at March 29, 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, a public listed company (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.
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,” it said.
Besides, 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.
Recognised Approved Adviser Framework
The enhanced ACE LR also enables eligible Approved Advisers to play a role in the ACE Market, pursuant to the newly introduced Recognised Approved Adviser Framework.
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 which it 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, or act as an adviser for certain prescribed corporate proposals, namely bonus issues, private placements made under a general mandate and dividend reinvestment schemes, for the transfer applicant.
Chief regulatory officer Julian Hashim said these 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. — BERNAMA
