Currently, there are 3 boards available on the stock market on Bursa Malaysia. They are the Main Market, ACE Market and LEAP Market. Before we begin to explain these 3 mainboards, you’ll probably want to know a little bit about its related history. In the ’90s, there were already 3 boards on Bursa Malaysia which are called the Main Board, the Second Board, and MESDAQ. Then in August 2009, the whole system was revamped by merging all securities in the Second Board to the Main Board under the name Main Market.
Meanwhile, MESDAQ was renamed ACE Market like it is today. Then starting from 15 June 2017, another new board was introduced, namely LEAP Market.
Let’s take a closer look at the Malaysian stock exchange
1st Exchange Board: Main Market
To be listed in the Main Market, the company must fulfil qualitative and quantitative criteria. First, it needs to be considered as established and must have a paid-up capital of RM50 million or higher. Not only that, companies also need to go through a “profitability test”, where only companies with strong financial health will pass. At least 3 years before being listed, the company must have recorded a minimum profit of RM20 million.
The IPO price for Companies in the Main Market should start with a minimum price of RM 0.50, with a public spread IPO at a minimum of 25% float.
There are many types of companies in this market, some shariah-compliant and some may not. If you want to know more about halal investing, check out Bijak Labur website.
2nd Exchange Board: ACE Market
To become eligible for listing in the ACE Market, the company must qualify as a growth company and needs to have a paid-up capital between RM5 to RM10 million.
Companies do not need to go through a ‘profit test’ in this market. If the company’s finances are not very strong, they can still be listed on this board. Besides, there is no minimum price for IPO, as long as the public spread meets the minimum criteria of 25% float.
For both the Main Market and ACE Market, all you need is a Central Depository System (CDS) account to start investing.
3rd Exchange Board: LEAP Market
The LEAP Market board was established to meet the financial market needs of small and medium-sized enterprises (SMEs) to raise funds between RM1 to RM10 million. To be listed on this board, companies must be in the SME category and need to have a minimum paid-up capital of RM2 million.
Unlike the Main Market & ACE Market, the LEAP market is not open to ordinary retail investors. It is only open to sophisticated investors, in other words – high net-worth individuals who:
- have a net asset worth at least RM3 million, or
- earns RM300,000 a year in the preceding 12 months, or
- have a combined earning of at least RM400,000 a year jointly with his or her partner.
Do you have what it takes to start investing?
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