1 SMEs identified for LEAP Market

We expect 2 or 3 more companies will be listed in the near future, says CEO


A total of 11 small and medium enterprises (SMEs) have been identified to enter the Leading Entrepreneur Accelerator Platform (LEAP) Market since its launch in July, said Bursa Malaysia Bhd CEO Datuk Seri Tajuddin Atan.

Out of the 11 SMEs, two companies — Cloudaron Group Bhd and Red Ideas Holdings Bhd — have been listed on Bursa Malaysia.

“We expect two or three more companies would be listed in the near future,” Tajuddin said yesterday.

He, however, did not disclose the nature of the two listed companies.

Tajuddin also said that 50% of the companies that applied for the LEAP Market did not meet the necessary requirements to be listed.

“I am saying that 50% of the companies at the initial stages showed that they are not at all ready to take up the LEAP Market.

“For example, some of them have not put proper accounting in place, some others had not made the change from Sdn Bhd to Bhd,” he said.

“So, what we need to do is to carve the path for them, but before that, they need to see a financial advisor who would look at the full picture and assess their position.”

At present, 25 licensed corporate financial advisors have been approved by the Securities Commission Malaysia to become advisors for the LEAP Market.

Tajuddin said investors on the LEAP Market are categorised as “sophisticated” as they understand the risk-reward concept and potential in investing in startups and SMEs.

“When you get onto the LEAP Market, the risk profile is different and that is why we are strictly limiting it for the time being.

“Hopefully in the near future, this market would develop and we would comfortably be able to add more industry players,” he said.

Earlier in his speech, Tajuddin said the LEAP Market was created for companies that were ready (to be listed), but could not meet the public market requirements.

“If you go through the LEAP Market, the parameters are different. For example, you will not need a profit track record.

“However, despite that freedom, it is important for companies to show their full potential to attract investors.

“For the LEAP Market, no prospectus is required and it has a short turnaround time of three weeks to a month (to get listed), in addition to reducing the required financial disclosure,” he said.

Meanwhile, International Trade and Industry Minister Datuk Seri Mustapa Mohamed commented on the LEAP Market, saying it provides an alternative platform for sophisticated investors to invest in the growth of SMEs.

“When it comes to the LEAP Market, SMEs have facilitative rules and regulations, as well as lower cost of compliance — this makes it accessible to more industry players.

“In addition to that, there is enhanced visibility and early exposure to prepare for a potential listing on the Main Market,” he said.

The LEAP Market was launched in July by Prime Minister Datuk Seri Mohd Najib Razak.

SMEs currently represent 98.5% of business establishments in the country.

Moreover, 76.5% of the total SMEs are micro-enterprises and the majority (89.2%) of the total are in the services sector.