25 July 2017

Bursa launches LEAP market. What's that ???

Calling all small-and-medium enterprises (SME) who want to raise funds to expand your business. Meanwhile, for investors, you have another market for you to consider (maybe for diversification purpose or searching for high potential return?).

Introducing Leading Entrepreneur Accelerator Platform (LEAP) !!!

LEAP Market is a new market offered by Bursa Malaysia which aims to:

  • provide SMEs and other companies with greater fund raising access and visibility via the capital market; and 
  • be accessible only to sophisticated investors *

* as prescribed under the Capital Markets and Services Act 2007

The LEAP Market aims to bring together potential issuers, intermediaries, and Sophisticated Investors onto a new platform to create a conducive marketplace for fund raising. The LEAP Market provides an efficient and transparent capital formation and price discovery mechanisms compare to private market. Sophisticated Investors can now have greater opportunities to participate in the growth of SMEs in Malaysia.

The established of the LEAP Market is premised on the following key guiding principles:

  • Cost-efficient fund raising & listing
  • Appropriate rules and regulation based on intended SMEs and companies
  • Qualified Market for Sophisticated Investors

A warm reminder or disclaimer by Bursa Malaysia:

The LEAP Market is aimed at facilitating access to the capital market by small and medium sized enterprises (“SMEs”) to which a higher investment risk may be attached. This market is a qualified market meant for sophisticated investors only, i.e. those who qualify under Part I of Schedules 6 and 7 of the Capital Markets and Services Act 2007 (“CMSA”). The issue or offer of securities on the LEAP Market is based on an information memorandum, and not a full prospectus registered with the Securities Commission Malaysia under section 233 of the CMSA. In the LEAP Market, sophisticated investors will have the full responsibility for evaluating the disclosed information, as well as the merits and risks of investing.

Source: Bursa Malaysia
The next question is: "Is this LEAP suitable for me?"
First, you must qualify yourself as the sophisticated investors' category. If yes, congratulations and you can move on to the next step. Are you risk takers? What we mean here are even greater risks than your existing share investments because those companies listed in LEAP will be even smaller or with a shorter track record. Having said so, you're could expect a greater potential return from LEAP due to its huge upside potential if the companies listed managed to pull off and transfer to the main board later.

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