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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, 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[1] 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.
Recognised Approved Adviser Framework
The enhanced ACE LR also enables eligible Approved Advisers[2] 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[3] 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[4], 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.
With the expansion of the pool of Sponsors/Advisers in the ACE Market to include the Recognised Approved Advisers, a transfer applicant may choose to continue working with its Approved Adviser, or secure the services of any other existing Sponsor/Adviser from the ACE Market, in a cost effective and efficient manner. Further, the expansion will propel capacity building of Recognised Approved Advisers through the exposure and experience gained on the ACE Market. Subsequent expansion and progression of a Recognised Approved Adviser’s role in the ACE Market may be considered after further assessment by the Exchange on its readiness and quality of performance.
“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. Established SMEs on the LEAP Market can now progress to the next stage of their growth by tapping into the wider investor space on the ACE Market,” said Julian Hashim, Chief Regulatory Officer of Bursa Malaysia Berhad. “Additionally, the Recognised Approved 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. Further information on the amendments are available at
[1] This is relatively shorter than the minimum sponsorship period in an initial public offering, which is three full financial years.
[2] Approved Advisers refer to those advisers authorised by the Exchange to carry out both the initial listing and post-listing activities on the LEAP Market.
[3] A Qualified Person refers to an individual who fulfils the requirements of a qualified person under the Securities Commission Malaysia’s (“SC”) Licensing Handbook.
[4] A replacement Sponsor refers to a Sponsor or Recognised Approved Adviser, as the case may be, which has been appointed by a listed corporation during the sponsorship period to assume the role of a Sponsor, after the resignation or termination of service of the Sponsor responsible for its admission to the ACE Market.
