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Additional resources

Learning

To learn about equity crowdfunding, please have a read of Equity crowdfunding guidelines.

To learn about venture capital, please have a read of Series A fund financing.

Financing facility provided by Bank Negara Malaysia for SMEs – Business Recapitalization Financing.

Benefits of public listing

Access to capital

Listing the company allows you to have access to capital market to meet business expansion and corporate goals.
Upon listing it also enables the company to raise further funding from existing shareholders and new investors via rights issues and placement of shares.

Enhance credibility

Given its frequent disclosure and stringent compliances requirement, a listed company is perceived to have better corporate governance and hence, stronger advantages in business conduct

Incentives for employees

Incentive mechanism could be used to align the long-term interest with employees and better quality of human capital management

Facilitate growth

Greater access to capital enables the company to scale quicker via mergers and acquisitions with companies and businesses.
Issuance new shares could also be an option for merger and acquisition exercise.

Enhance profile and visibility

Listed company enjoy better media coverage, awareness and eventually enhance company and management team's profiles.

Widen shareholders' base

Better profiling and liquidity provides a good entry for various investors including professionals and institutional investors

Listing requirements of Bursa Malaysia

Aspect
Main Market
Ace Market
Quantitative admission criteria
  1.  Profit test
  • Uninterrupted profit of 3 to 5 full financial years (“FY”), with aggregate after-tax profit of at least RM20 million;
  • After-tax profit of at least RM6 million for the most recent FY; and
  • Have been operating in the same core business over at least the profit track record prior to submission
  1.  Market capitalization test
  • A total market capitalization of at least RM500 million upon listing; and Incorporated and generated operating revenue for at least one full FY prior to submission
  • No minimum operating track record or profit requirement.
Public spread
  • At least 25% of the company’s total number of shares; and
  • Minimum of 1,000 public shareholders holding not less than 100 shares each.
  • At least 25% of the company’s total number of shares; and
  • Minimum of 200 public shareholders holding not less than 100 shares each
Bumiputera equity requirement
  • Allocation of 50% of the public spread requirement to Bumiputera investors at the point of listing
  • No requirement at the point of listing.
  • Allocation of 12.5% of the enlarged share capital to Ministry of International Trade and Industry (MITI)-recognized Bumiputera investors.
  • within 1 year after achieving Main Market profit track record, or 5 years after being listed on ACE Market,whichever is the earlier
Sponsorship
  • Not applicable
  • Engage a Sponsor to assess the suitability for listing.
  • Sponsorship is required for at least 3 full FY post listing and the Sponsor who submitted the listing application must act as the Sponsor for at least 1 full FY following upon admission.
Management continuity
  • Continuity of substantially the same management for at least 3 full FY prior to submission; or
  • For market capitalization test or infrastructure project corporation test, since the commencement of operations (if less than 3 full FY)
  • Continuity of substantially the same management for 3 full FY prior to submission or since its incorporation (if less than 3 full FY).
Transaction with related parties
  • Must be based on terms and conditions which are not unfavorable to the company.
  • All trade debts exceeding the normal credit period and all non-trade debts, owing by the interested persons to the company or its subsidiary companies must be fully settled prior to listing
  • Must be based on terms and conditions which are not unfavorable to the company.
  • All trade debts exceeding the normal credit period and all non-trade debts, owing by the interested persons to the company or its subsidiary companies must be fully settled prior to listing

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