If you have a business which is doing well but you need more funds to expand, here’s another option in BURSA Malaysia. It’s known as the Leading Entrepreneur Accelerator Platform (LEAP) market. Generally, the company needs to fulfil requirements as follows:
(1) An applicant must have a clearly identifiable core business.
(2) An applicant must not be considered as suitable for listing if it is –
(a) a subsidiary or holding company of a corporation currently listed on the Main Market or
ACE Market of the Exchange and the listing of such applicant will result in the existing
listed corporation within the group ceasing to have a separate autonomous business of
its own and not be capable of sustaining its listing in the future;
(b) an investment holding corporation with no immediate or prospective business operations
within its group; or
(c) an incubator, including a technology incubator which may apply for admission to the Main
A minimum share of 10 percent of the total number of ordinary shares must be in the hands of public shareholders at admission. Look at the full requirements here. What has happened to some recent LEAP market listings? Apparently, doing better than some ACE market ones.
Article in themalaysianreserve.com here Bursa Malaysia has witnessed 17 listings year-to-date (YTD), with another three listings in the pipeline for the year. LEAP market listings have growth theme and eight of the nine counters listed on the LEAP Market are trading at a premium. This compares with four out of five on the ACE Market trading below their listing offer price. A broker said, “The more exclusive nature of the LEAP Market makes it harder to trade. The small and medium enterprises listing (there) attract well-to-do long-term investors looking at the growth theme.”
LEAP was set up in 2017 and currently has 22 counter listed from the total of 922 counters in Bursa Malaysia. Within 2019, a total of 9 companies have sought funding listing in the LEAP market. A notable one, parking service management service provider Matrix Parking Solution Holdings Bhd saw its shares increase as much as 30% on the first day of trading. Its stock jumped to 17 sen from the issuance price of 13 sen per share. Article in themalaysianreserve.com here
A friend’s company is going for LEAP listing ext year. I am both happy and excited to see how it will fare. Once his application is approved, will share with everyone yeah. Though LEAP market is only for institutional investors, I think it gives that required recognition too as well as a public branding to some of these companies. Many times, businesses are definitely more open to dealing with them if it’s a listed entity due to the higher trust level. Let’s keep LEAP in mind yeah for that potential business expansion funds. In the mean time, start the business first. Happy rising higher.
<Featured Image is courtesy of Stock Photos from Goombung>
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