In Malaysia, an eligible company which chooses to go public may seek admission of its shares on any of the three approved markets available on the stock exchange of Malaysia, Bursa Malaysia Securities Berhad (“Bursa Securities”), namely:
- the Main Market, the prime market for established companies which satisfy any of the quantitative admission criteria (as set out under paragraph 2.1 below);
- the Access, Certainty, Efficiency (“ACE”) Market (formerly known as the MESDAQ Market prior to 3 August 2009), a sponsor-driven market for companies with growth prospects; and
- the Leading Entrepreneur Accelerator Platform (“LEAP”) Market, an adviser-driven market for emerging companies, including small and medium-sized enterprises (“SMEs”).
Any company intending to list on the Main Market, ACE Market or LEAP Market by undertaking an IPO is required to, in addition to other applicable laws and/or guidelines, comply with the respective listing requirements issued by Bursa Securities for each of the markets (“Listing Requirements”), and the Equity Guidelines issued by the Securities Commission Malaysia (“SC”) (to be complied with by Main Market listing applicants only).
This Article aims to provide a comparison of certain key aspects between IEO and IPO that an issuer may wish to consider when planning for its fundraising exercise in Malaysia.
