3 Boards on Bursa Malaysia: Main Market, ACE Market & LEAP Market
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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At present, there are 3 boards on the Bursa Malaysia stock exchange — the Main Market, ACE Market and LEAP Market. Before we begin explaining these 3 main boards, you need to know a little bit of history.
If you are an avid reader, you may have come across older stock market books from the 1990s. Back then, there were already 3 boards on Bursa Malaysia comprising the Main Board, Second Board and MESDAQ. In August 2009, these were restructured by merging all securities from the Second Board into the Main Board under the new name Main Market.
Meanwhile, MESDAQ was renamed to ACE Market as it is known today. After nearly 7 years, on 15 June 2017, a new board called the LEAP Market was introduced.
To be listed on the Main Market, a company must fall under the established category and have a paid-up capital exceeding RM 50 million.
The company must go through a ''profit test'' where only companies with a strong financial track record qualify. In the 3 to 5 years prior to listing, the company must have recorded a minimum profit of RM 20 million.
The IPO price must start at a minimum of RM 0.50 and above, with a minimum public spread of 25% free float.
To be listed on the ACE Market, a company must fall under the growth category and have a paid-up capital of between RM 5 to RM 10 million.
The company does not need to undergo a ''profit test''. Even if the company''s financials are not particularly strong, it can still be listed on this board.
There is no minimum price for the IPO, but the public spread requires a minimum free float of 25%.
For both the Main Market and ACE Market, you will need a CDS account to start investing. Find out how to open a CDS account with M+ here.
LEAP is an acronym for Leading Entrepreneur Accelerated Platform.
According to Bursa Malaysia CEO Datuk Seri Tajuddin Atan, the LEAP Market was established to meet the financial market needs of small and medium-sized enterprises (SMEs) seeking to raise funds between RM 1 to RM 10 million.
To be listed on this board, the company must be in the SME category and have a minimum paid-up capital of RM 2 million.
The LEAP Market is not open to ordinary retail investors. It is only open to what are known as ''sophisticated investors'' — referring to high net-worth clients who possess net assets of RM 3 million, or earn RM 300,000 per year, or RM 400,000 jointly with their spouse.
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If you are not yet eligible to invest in the LEAP Market, do not worry — the stock market on Bursa Malaysia is also open to retail investors with moderate income. Join the Mahersaham Super Trader programme to learn how you can generate profits from counters listed on the Main Market and ACE Market.
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The 3 boards on Bursa Malaysia are the Main Market, ACE Market and LEAP Market. The Main Market is for established companies, the ACE Market is for growth-stage companies, and the LEAP Market is for small and medium-sized enterprises (SMEs).
The Main Market requires companies to have paid-up capital exceeding RM 50 million and pass a profit test showing minimum profits of RM 20 million over 3 to 5 years. The ACE Market requires paid-up capital of RM 5 to RM 10 million and does not require a profit test.
No, the LEAP Market is not open to ordinary retail investors. It is only available to sophisticated investors who have net assets of at least RM 3 million, or earn RM 300,000 annually, or RM 400,000 jointly with their spouse.
To start investing on the Main Market or ACE Market, you need to open a CDS (Central Depository System) account. You can open a CDS account to begin your investment journey.