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What is the LEAP Market? |
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A new market offered by Bursa Malaysia which will provide companies, mainly SMEs, with greater fund raising access and visibility via the capital market; and will be accessible only to Sophisticated Investors. *
The LEAP Market aims to bring together SMEs and companies, intermediaries, Sophisticated Investors and Advisers onto a single platform to create a conducive marketplace to raise funds, a marketplace that provides for efficient and transparent capital formation and price discovery mechanisms compared to a private market.
* as prescribed under the Capital Markets and Services Act 2007
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What are the objectives of the LEAP Market? |
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- Supports the national development agenda of SMEs
- Creates a platform for SMEs and companies to raise funds
- Provides an alternative and complementary platform for Sophisticated Investors to invest in the growth of SMEs and companies
- Provides Sophisticated Investors access to a wider pool of potential investments
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What are the key features of the LEAP Market? |
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- An efficient, fast and transparent market
- Facilitative rules & regulations and lower cost of compliance
- Sophisticated Investors (Note : please refer to Investor section below for details)
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Which SMEs qualify for listing on the LEAP Market? |
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All public companies incorporated in Malaysia with a clearly identifiable core business. Locally incorporated companies and SMEs with foreign operations are eligible to list on the LEAP Market.
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Who can invest in companies listed on the LEAP Market? |
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Only Sophisticated Investors, as defined under Schedules 6 & 7 of the Capital Markets and Services Act 2007 (“CMSA”) are allowed to invest in companies listed on the LEAP Market. The Sophisticated Investors are categorised as:
- Accredited investors;
- High net-worth entities; and
- High net-worth individuals.
Examples include:
- an individual whose total net personal assets exceeds RM3,000,000 or equivalent in foreign currencies; or
- an individual who has a gross annual income exceeding RM300,000 or equivalent in foreign currencies in the preceding twelve months; or
- an individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or equivalent in foreign currencies in the preceding twelve months; or
- a corporation with total net assets exceeding RM10,000,000 or equivalent in foreign currencies based on last audited accounts; or
- a partnership with total net assets exceeding RM10,000,000 or its equivalent in foreign currencies; or
- a company that is registered as a trust company under the Trust Companies Act 1949 which has assets exceeding RM10,000,000 under management; or
- o a corporation that is a public company under the Malaysia Companies Act 2016 which is approved by the Securities Commission Malaysia to be a trustee under the Capital Markets and Services Act 2007 and has assets exceeding RM10,000,000 under management.
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What are the value propositions for the LEAP Market? |
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| For SMEs and companies |
For Sophisticated Investors |
For Adviser(s) |
- Alternative platform to raise funds
- Facilitative rules & regulations and lower cost of compliance
- Enhanced visibility / profiling
- Early exposure to prepare for a potential listing on the ACE / Main Markets
- Potentially unlock shareholder value
- Price discovery therefore easier to undertake mergers and acquisitions
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- Greater price discovery / transparency
- Capitalise on the potential growth of a LEAP Market company
- Ease / flexibility of divestment of their investments
- Early investment which may yield high returns when companies on the LEAP Market potentially list on the ACE / Main Market
- Access to a wider pool of potential investments
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- Access to additional revenue stream for new segments
- Enhanced visibility / profiling
- Facilitative rules & regulations and lower cost of compliance
- Capitalise on the potential growth of a LEAP Market company
- Ease / flexibility of monetising shareholder value for their clients
- Potential to guide issuers-clients to graduate to the ACE / Main Market
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What are some international examples of the LEAP Market? |
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The LEAP Market equivalents can be found in the United States, South Korea, India, China and Taiwan.
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How does the LEAP Market complement other funding options, e.g. Peer-to-Peer Financing Platform, Angel Investors, Equity Crowd Funding, ACE Market, Venture Capitalists? |
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The LEAP Market serves to complete and complement the available funding options provided to SMEs and companies depending on the stage of the company’s growth and funding needs.
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Who is the approving party for listing? |
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Bursa Malaysia is the single approving authority for listing.
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Does the LEAP Market prescribe a time limit for listed SMEs and companies to migrate to other boards? |
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There is no prescribed time limit.
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Will the LEAP Market be a part of Bursa Malaysia? |
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The LEAP Market is a part of Bursa Malaysia and will operate under Bursa Malaysia Securities.
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How will the trading process take place? |
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Trading on the LEAP Market will follow the same trading mechanism as the current ACE / Main Markets.
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