What you need to know listing at Bursa Malaysia Listing and the requirements

In Malaysia, there are 3 markets: Main Market where the big companies are doing the fund raising and shares trading with public as such Sunway Group, Petronas and banks while ACE markets where companies are thriving to grow with the ultimate aim in entering Main market and LEAP market. Technically, all companies are free to apply for listing as long the company is proven in having growth positively.

1. Requirements for Main market:

1. Having profit figure and uninterrupted profit after tax of 3 to 5 full financial years with an aggregate of minimum of RM 20 million and a minimum of RM 6 million profit after tax in the latest full financial year BURSA’s Listing Criteria in One Read.pdf
2. The company is able to fulfill the Market Capitalization Test (Market capitalization which is also known as market value) is the share price times the number of shares outstanding (including their several classes) where the company is able to offer RM 500 million in total of market capitalization once listed in public upon incorporation where at the same time, producing operation revenue of 1 full financial year before application for public listing.
3. The company is to submit the details for Infrastructure Project Corporation Test where the company is able to construct an infrastructure either in Malaysia or outside Malaysia with a minimum of RM 500 million of project’s costing.
4. Post IPO: The company will need to issue a minimum of 25% of the company ‘s shares to the public.
5. Timeline for listing: 6-12 months with costing of RM 2 million to RM 3 million.
6. The company requires 1,000 public shareholders with issuing price at least RM 0.50 or higher.
7. Allocation of 50% of the public spread on bets effort basis.
8. Reference: https://www.bursamalaysia.com/regulation/listing_requirements/main_market/listing_requirements

2. Requirements for ACE (Access, Certainty, Efficiency) market:

1. The company to have paid-up capital approximately RM 5 million to RM 10 million BURSA’s Listing Criteria in One Read.pdf
2. No minimum operating track record or profit requirements.
3. Post IPO: The company will need to issue a minimum of 25% of the company’s shares to the public.
4. Timeline for listing: 4-6 months with costing of RM 1.5 million to RM 2 million.
5. The company requires 200 public shareholders with holding at least 100 shares where the issuance price at least RM 0.10.
6. Allocation of 12.5% when enlarging paid-up to Bumiputera investors after 5 years of listing.
7. Reference: https://www.bursamalaysia.com/regulation/listing_requirements/ace_market/listing_requirements

3. Requirements for LEAP (Leading Entrepreneur, Accelerator Platform) market:

1. It is preferred with profit record but not mandatory.
2. Public spread at least enlarging 10% but without minimum shareholder.
3. Optional allocation to Bumiputera’s equity.
4. Company needs to demonstrate solvency under CA 2016.
5. Reference: https://www.bursamalaysia.com/regulation/listing_requirements/leap_market/listing_requirements 

4. To list your business on Bursa Malaysia, the following documents for our research work are needed:

1. Last 5 years audited financial statements;
2. Latest management accounts;
3. Net profit forecast and projection for the next 3 years (rough estimation);
4. Estimated funds size required and expected utilization of proceeds, e.g. for capital expansion, working capital requirements, details of potential acquisition, etc; and
5. Company profile and its shareholding structure.
6. Reference: https://www.bursamalaysia.com/listing/get_listed/listing_criteria

5. Listing Summary at BURSA:

1. The process from Pre-Submission till Listing process is summarized as below and IR stands for Investors Relation:

6. BURSA’s Listing Timeframe

7. What is PN 17?

a. PN 17 stands for Practice Note 17/ 2005 which relating companies in financial destress and will need to submit proposal to Authority for corporate restructuring.

b. Criteria:

i. Shareholders’ fund is either equal or less than 25% of the total paid -up capital of the listed Company;

ii. Receivers are being appointed to take control at least 50% of the total assets of the listed Company;

iii. Winding up of an associate company which makes up at least 50% of the total assets;

iv. The auditor expressed disclaimer opinion of the listed company’s latest audited accounts;

v. The announcement of inability in providing solvency declaration;

vi. The Company had ceased or major part of the operations.