<article><a style="color: #000080;" href="http://www.bursamalaysia.com/market/" target="_blank">Bursa Malaysia Bhd</a>, the Malaysia stock exchange has announced the outcome of the <a style="color: #000080;" href="http://www.bursamalaysia.com/market/regulation/rules/listing-requirements/ace-market-copy/listing-requirements" target="_blank">ACE Market Listing Requirements</a> review, which extends to both the admission and post-listing obligations for the ACE Market.</article>

<a style="color: #000080;" href="http://www.bursamalaysia.com/market/" target="_blank">Bursa Malaysia Bhd</a>, the Malaysia stock exchange has announced the outcome of the <a style="color: #000080;" href="http://www.bursamalaysia.com/market/regulation/rules/listing-requirements/ace-market-copy/listing-requirements" target="_blank">ACE Market Listing Requirements</a> review, which extends to both the admission and post-listing obligations for the ACE Market.
The review has incorporated the industry and public feedback received during the market consultation conducted between November 18, 2014 and January 9, 2015, the bourse said in a statement.
Chief executive officer of Bursa Malaysia Tajuddin Atan said yesterday that the exchange hopes that the enhancements to the ACE Listing Requirements will incentivise and attract more eligible SMEs to consider initial public offerings (IPOs) on the ACE Market in their pursuit for growth.
The amendments to the Listing Requirements covered admission criteria and enhancing the competitiveness of the platform. The enhancements introduced, appear to ease the process for established ACE Market listed companies to ascend to the Main Market.
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<dt class="wp-caption-dt"><a href="http://www.dealstreetasia.com/wp-content/uploads/2015/07/ACE-Market-LR-amendments.jpg"><img loading="lazy" decoding="async" class="wp-image-9103 size-full" src="http://www.dealstreetasia.com/wp-content/uploads/2015/07/ACE-Market-LR-amendments.jpg" alt="ACE Market LR amendments" width="600" height="545" /></a></dt>
<dd class="wp-caption-dd">ACE Market LR amendments</dd>
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Notably, this review came at the heels of Malaysia legalising equity crowdfunding as an alternative platform for small businesses to fundraise.
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“Our ACE Market is targeted at eligible small and medium enterprises (SME), specifically to facilitate their need for capital raising to grow their businesses, enhance their profile and to fully realise their potential,” Tajuddin added.
SMEs currently contribute 33 per cent to the Malaysia’s gross domestic product (GDP) and by moving further up the value chain this figure is expected to increase to 41 percent by 2020, according to Bursa Malaysia.
To date, there are 107 public listed corporations from various economic sectors on the ACE Market. Since August 2009, a total of MYR522.28 million was raised via IPOs on the ACE Market and a total of MYR1.85 billion via secondary fund raising activities, the statement noted.
Small and medium companies do not need to show any minimum operating track record or profit requirement to list on the ACE Market. For Main Market listings, companies will need to prove three to five full financial years of uninterrupted profit after tax (PAT) at an aggregate of at least MYR20 million, and PAT of minimum MYR6 million in the latest full financial year.
There is no minimum IPO price enforced on ACE Market listings.
An ACE Market listed company needs to have at least 25 per cent of the company&#8217;s share capital for public spread, and a minimum of 200 public shareholders holding not less than 100 shares each. In comparison, Main Market listed companies have the same public spread requirements but a minimum of 1000 public shareholders holding not less than 100 shares each.
ACE Market potential companies need to engage a sponsor to assess the suitability for listing and the sponsors need to remain with the company for at least three years post-listing. The company will also need sufficient level of working capital to sustain at least12 months.
Globally, Malaysia was ranked the world&#8217;s eighth most efficient market and 13th best for regulation of securities exchanges, according to the recent World Economic Forum Global Competitiveness Report 2014 to 2015.
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Bursa Malaysia Bhd, the Malaysia stock exchange has announced the outcome of the ACE Market Listing Requirements review, which extends to both the admission and post-listing obligations for the ACE Market.

Bursa Malaysia enhances ACE Market listing requirements

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