Bursa Malaysia – The ACE Market

To strengthen the position of Bursa Securities as a conducive capital raising destination, the enhanced framework of the MESDAQ Market will be known as ACE Market effective 3 August 2009.

Under the enhanced framework of the ACE Market, there will be certain streamlining of regulatory functions such as:-

  1. Securities Commission (“SC”) will continue to register prospectuses of companies seeking listing in ACE Market to ensure adequate disclosures to the investors;
  2. SC’s approval, however, is not required where companies are seeking listing on the ACE Market and subsequent proposals of listed corporations on the ACE Market. All listing requirements within the ACE Market will be governed under the ACE Listing Requirement; and
  3. This enhanced framework empowers sponsors with greater flexibility and certainty to advise prospective corporations on access to the capital market both at the time of listing and subsequently through further fund-raising exercises. The roles and responsibilities of the sponsors will therefore, significantly enhances accordingly by way of the ability to assess the suitability of a company seeking listing on the ACE Market.

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Objectives of the Ace Listing Requirement are:-

  1. Enhance attractiveness of listing on the ACE Market;
  2. Improve efficiency and time to market;
  3. Strengthen investor protection through enhanced provisions for greater clarity, integrity and credibility of the company as well as the market.

The sponsorship regime has been significantly enhanced in line with the ACE Market being a sponsor-driven alternative market, and therefore, must comply with the ACE Listing Requirement with effect from 3 August 2009.

Further, a listed issuer must submit a valuation report in cases where there is a transaction involving non-related parties (percentage ratios is 25% or more) or related parties (percentage ratios is 5% or more).