Understanding Listing Criteria for Different Boards in Malaysia
The Malaysian share market consist of three boards: the Main, ACE, and LEAP markets. Each board has its own listing criteria, tailored to accommodate companies at different stages of growth and development. Here's a breakdown of the listing criteria for each board:
Main Market
The Main Market is suitable for established companies with a sizeable business track record. The listing criteria include:
Profit Test: The company shall have an aggregate after-tax profit of at least RM20 million for the past 3-5 years, with at least RM6 million in the most recent year.
Market Capitalization Test: The company must have a minimum market capitalization of RM500 million upon listing.
MR D.I.Y. Group (M) Berhad, a leading home improvement retailer in Malaysia, successfully listed on the Main Market in October 2020, raising RM1.5 billion in its IPO.
ACE Market
The ACE Market is designed for companies with growth potential, regardless of their financial track record. The listing criteria are more flexible:
Sponsorship: The company must be sponsored by an approved Adviser who will assess its suitability for listing.
Business Plan: The company must submit a business plan demonstrating its growth potential.
CTOS Digital Berhad, a leading credit reporting agency in Malaysia, was listed on the ACE Market in July 2021, raising RM1.2 billion in its IPO.
LEAP Market
The LEAP Market caters to small and medium enterprises (SMEs) and offers a more streamlined listing process:
Eligibility: The company must be a public unlisted company, an SME, or a special-purpose acquisition company (SPAC).
Adviser: The company must appoint a LEAP Market Adviser to assist with the listing process.
Polymer Link Holdings Berhad, a manufacturer of polymer products, was listed on the LEAP Market in January 2022, raising RM6.6 million in its IPO.