Bursa Malaysia Listing Requirements: An Overview of IPO Listing

For Malaysian companies seeking growth capital and greater visibility, an Initial Public Offering (IPO) on Bursa Malaysia represents a significant milestone. However, preparing for an IPO is not just about raising funds—it requires meeting stringent Bursa Malaysia listing requirements.

Understanding these requirements is crucial for businesses to navigate the IPO process in Malaysia, choose the right market (Main, ACE, or LEAP), and ensure compliance with the Securities Commission Malaysia (SC).

This guide provides an overview of Bursa Malaysia listing requirements such as the listing criteria, corporate governance requirements and more.

For an in-depth perspective, read our Going Public: Creating Value through IPO report. [ 12506 kb ]

Bursa Malaysia: An Overview

Bursa Malaysia is the country’s stock exchange, offering three markets for IPO listings:

1.  Main Market – The Main Market is a prime board for established companies that meet high standards of quality, size, and operations. 
2.  ACE Market – The ACE Market is a sponsor-driven market designed for fast-growing companies with no requirements on historical profit track record
3.  LEAP Market – The LEAP Market is an adviser-driven market for small and medium-sized enterprises (SMEs), only limited to sophisticated investors.

Each market has its unique listing requirements, tailored to different stages of business maturity.

Why Do Companies Go Public? 

Going public is a major aspiration for many companies of any size. Companies choose to go public for a variety of strategic reasons such as:

• Raise capital to fund expansion, research and development (R&D), acquisitions, or debt repayment.
• Enhance brand visibility and credibility, helping to attract both customers and talent. 
• Provide liquidity for shareholders, offering existing investors an exit opportunity. 
• Create a growth pathway, where SMEs begin on the LEAP Market, advance to the ACE Market, and eventually migrate to the Main Market. 

However, listing also brings greater transparency, stricter governance, and ongoing reporting obligations. Companies need to weigh both benefits and responsibilities before starting the IPO process. 

Bursa Malaysia Main Market Listing Requirements

The Main Market is Bursa Malaysia’s premier board, designed for larger and well-established companies. It has the most stringent eligibility standards among all the boards, with the key listing requirements outlined below:

Admission criteria

Companies seeking to list on the Main Market must meet either the profit test or the market capitalisation test below:

• Profit Test: The applicant company must demonstrate an uninterrupted profit of 3 to 5 full financial years, with aggregate after-tax profit of at least RM20 million. The company must also show an after-tax profit of at least RM6 million for the most recent financial year.
• Market Capitalisation Test: The applicant company must have a total market capitalisation of at least RM500 million upon listing and must be incorporated and have generated operating revenue for at least one full financial year prior to submission.

For Infrastructure Project Corporation, the criteria are as below:

• Infrastructure Project Corporation Test: The applicant company must have the right to build and operate an infrastructure project in or outside Malaysia, with project costs of not less than RM500 million and for which a concession or licence for the infrastructure project has been awarded by a government or a state agency (in or outside Malaysia) with a remaining concession or licence period of at least 15 years from the date of submission.

Public spread and shareholding distribution

To ensure adequate liquidity in the market, listed companies are required to maintain a minimum level of public shareholding spread as follows:

• At least 25% of the company’s total number of shares must be held by a minimum of 1,000 public shareholders holding not less than 100 shares each.
• At least 50% of the public spread must be allocated to Bumiputera investors at the point of listing.

Corporate Governance Requirements

• At least two or one-third of directors (whichever is higher) must be independent. The Malaysian Code on Corporate Governance (MCCG) encourages at least half, and for large companies, a majority independent. 
• Independent directors are capped at 12 years (unless re-designated by shareholders). Every listed company must have at least one female director. 
• Companies must maintain a strong audit committee, risk management, and internal controls in line with MCCG principles.

Bursa Malaysia ACE Market Listing Requirements

The ACE Market focuses on high-growth companies, particularly in technology and innovative sectors. Compared to the Main Market, the eligibility requirements are less stringent, providing growing companies with easier access.

Admission Criteria

There is no minimum operating track record or profit required; however, the applicant company must engage a sponsor to assess the suitability for listing. Sponsorship is required for at least 3 full financial years post-listing and the sponsor who submitted the listing application must act as the Sponsor for at least 1 full financial year following admission.

Public spread and shareholding distribution

At least 25% of the company’s total number of shares must be held by a minimum of 200 public shareholders holding not less than 100 shares each. 

There is no requirement for a percentage of shares to be allocated to Bumiputeras for subscription.

Governance

• At least two or one-third of directors (whichever is higher) must be independent. The Malaysian Code on Corporate Governance (MCCG) encourages at least half, and for large companies, a majority independent. 
• Independent directors are capped at 12 years (unless re-designated by shareholders). Every listed company must have at least one female director.
• Companies must maintain a strong audit committee, risk management, and internal controls in line with MCCG principles.

Bursa Malaysia LEAP Market Listing Requirements

The LEAP Market is tailored for SMEs and offers a more flexible avenue for raising capital. The eligibility criteria are the least stringent among all the boards:

Admission criteria

There is no minimum operating track record or profit required, however; the applicant company must engage an approved Adviser to assess the suitability for listing. 

The company must also secure and maintain a Continuing Adviser for at least 3 years post-listing and the Approved Adviser who submitted the listing application must act as the Continuing Adviser for at least 1 financial year upon admission.

Public spread and shareholding distribution

To ensure some level of liquidity and public participation, at least 10% of the ordinary shares to be listed must be held by public shareholders. No requirement of % of shares that must be allocated to Bumiputeras for subscription.

Benefits

• Lower listing cost.
• Entry point for SMEs seeking visibility before migrating to ACE or Main Market.

Key Considerations Before Listing

Before embarking on the IPO journey, companies should carefully consider these key questions to ensure readiness:

• Is our business model proven, sustainable, and scalable?
• Can we comply with the corporate governance, transparency, and compliance requirements?
• Are we prepared for the costs of an IPO, including advisers, regulatory fees, and ongoing compliance?
• Is the timing right, considering market conditions, industry trends, and our internal business cycle?

FAQs About Bursa Malaysia Listing Requirement

Q1: What financial information must companies prepare for an IPO listing in Malaysia?  

• Main Market: Requires an audited track record of 3–5 years (depending on test applied) along with interim results if last audited accounts are older than 6 months. 
• ACE & LEAP: No profit record is required, but financial statements must still be prepared in accordance with the Malaysian Financial Reporting Standards (MFRS) and audited. 

Q2: Can loss-making companies list on Bursa Malaysia?

 Yes, but only on the ACE Market or LEAP Market, where profit track records are not required.

Q3: What is the auditor and reporting accountant’s role in an IPO? 

Auditors act as reporting accountants, providing assurance on historical financial statements, issuing reports on financial information in the prospectus, reviewing pro forma financial information, and giving comfort letters. Their work underpins investor confidence in the IPO process. 

Q4: What are common financial record issues auditors should watch for in IPO candidates? 

• Incomplete or inconsistent historical financial records. 
• Non-compliance with MFRS (e.g., revenue recognition, consolidation). 
• One-off adjustments made to meet profit test criteria. 
• Weak internal controls not ready for quarterly and annual reporting obligations. 

Final Thoughts

Meeting Bursa Malaysia listing requirements is a rigorous process requiring financial strength, governance readiness, and regulatory compliance. Whether targeting the Main, ACE, or LEAP Market, businesses must align with listing rules to successfully complete the IPO process in Malaysia.

At Grant Thornton Malaysia, we provide audit and Reporting Accountants services to support business throughout their IPO journey.

Explore our Reporting Accountants services to know more.