Choosing the Right Market: ACE Market vs Main Market in Malaysia’s IPO Process
For many Malaysian corporates, an Initial Public Offering (IPO) is the ultimate milestone — unlocking growth capital, increasing brand visibility, and enhancing corporate credibility.
But before ringing the bell at Bursa Malaysia, one critical decision must be made: Which market should your company list on — the ACE Market or the Main Market?
The choice isn’t just about prestige. It involves regulatory requirements, business maturity, and long-term growth strategies. With the guidance of a qualified pre-IPO advisory team, businesses can evaluate their readiness and align their IPO journey with the right market.
This article breaks down the key differences between ACE Market and Main Market, what companies need to consider, and how IPO readiness assessment and accounting services in Malaysia play a crucial role in the process.
But before ringing the bell at Bursa Malaysia, one critical decision must be made: Which market should your company list on — the ACE Market or the Main Market?
The choice isn’t just about prestige. It involves regulatory requirements, business maturity, and long-term growth strategies. With the guidance of a qualified pre-IPO advisory team, businesses can evaluate their readiness and align their IPO journey with the right market.
This article breaks down the key differences between ACE Market and Main Market, what companies need to consider, and how IPO readiness assessment and accounting services in Malaysia play a crucial role in the process.
Understanding Malaysia’s IPO Landscape
Bursa Malaysia offers three main boards: Main Market, ACE Market, and LEAP Market.
- Main Market: For established companies with a strong track record and profitability.
- ACE Market: For growth companies without profit track records but with high potential.
- LEAP Market: Exclusively for sophisticated investors and SMEs seeking alternative capital raising.
For most corporates aiming for public visibility and broader investor participation, the choice is between the ACE Market and the Main Market.
For an overview of listing, see IPO Initial Public Offering Listing Process in Malaysia.
For an overview of listing, see IPO Initial Public Offering Listing Process in Malaysia.
ACE Market vs Main Market: Key Differences
1. Eligibility Requirements
Main Market
- Requires a profit track record of at least 3–5 years with an aggregate profit after tax of RM20 million and a minimum of RM6 million in the latest year.
- Suitable for mature businesses with proven earnings.
ACE Market
- No profit track record requirement.
- Companies are assessed based on growth potential, business model, and future prospects.
- Typically chosen by tech companies, innovative startups, and high-growth businesses.
2. Investor Base
Main Market
- Attracts institutional investors, fund managers, and a wide retail investor base.
- Provides stronger credibility, especially for cross-border expansions.
ACE Market
- Often attracts investors looking for growth opportunities in emerging companies.
- While accessible to retail investors, it may carry higher perceived risk.
3. Regulatory Oversight
Main Market
- Directly regulated by the Securities Commission Malaysia (SC).
ACE Market
- Overseen by Bursa Malaysia with approval from a sponsor (investment bank or corporate advisor).
4. Prestige and Visibility
Main Market
- Seen as the flagship board, offering higher prestige and visibility both locally and internationally.
ACE Market
- Serves as a stepping stone — many companies migrate from ACE to Main Market once they establish profitability.
5. Costs and Timeline
Main Market
- Higher listing costs due to stricter compliance, disclosures, and governance requirements.
ACE Market
- Relatively lower costs, shorter preparation time, but still requires thorough due diligence.
Strategic Considerations for Businesses
Choosing between ACE and Main Market depends on several factors:
- Stage of Business: Is your company profitable with a strong history, or are you in a high-growth stage?
- Capital Needs: How much capital do you intend to raise, and what investor base do you want to attract?
- Risk Appetite: Are you prepared for the governance and scrutiny that comes with the Main Market?
- Future Plans: Do you intend to eventually migrate to the Main Market?
For guidance on preparation, see What to Prepare Before IPO: Beginner Guide.
The Role of Pre-IPO Advisory
A pre-IPO advisory team helps businesses navigate the complexities of listing. Services include:
- IPO readiness assessment – evaluating financial performance, governance, compliance, and internal controls.
- Structuring and strategy – advising on whether ACE or Main Market better suits your goals.
- Accounting services in Malaysia – ensuring financial reporting is robust and aligned with regulatory standards.
- Risk identification – highlighting gaps that may delay or derail your listing.
Common Mistakes to Avoid
- Rushing into IPO without a proper IPO readiness assessment.
- Overestimating valuation without market validation.
- Weak internal controls and governance structures.
- Ignoring post-IPO obligations (reporting, compliance).
- Choosing the wrong market without considering long-term strategy.
See more: Initial Public Offering Mistakes to Avoid.
Case Example: Tech Startup vs Established Conglomerate
- Tech Startup: A Malaysian technology startup with no profit history but strong recurring revenue streams may opt for the ACE Market. Investors are attracted to growth potential and scalability. Over time, once profitable, the company may migrate to the Main Market.
- Conglomerate: A mature business with decades of operations and steady profits is more suitable for the Main Market, where it gains wider investor confidence and potentially higher valuation multiples.
FAQs
Q1: Can a company move from ACE Market to Main Market?
A: Yes. Many companies use ACE Market as a stepping stone. Once they meet Main Market’s profit requirements, they can apply for a transfer.
Q2: Which market is better for SMEs in Malaysia?
A: ACE Market is often better for SMEs and growth companies without a long profit history, while larger, established SMEs may consider the Main Market if they meet the criteria.
Q3: How long does the IPO process usually take?
A: Depending on the market and complexity, the process can take 6–18 months. A pre-IPO advisory team helps streamline preparation.
Q4: What role do accounting services in Malaysia play in an IPO?
A: Accurate financial statements are critical. Professional accounting services ensure compliance with Bursa Malaysia’s reporting standards, boosting investor confidence.
Q5: Why is an IPO readiness assessment important?
A: It identifies gaps in compliance, governance, and financials, helping companies avoid costly delays and ensuring a smoother listing process.
A: Yes. Many companies use ACE Market as a stepping stone. Once they meet Main Market’s profit requirements, they can apply for a transfer.
Q2: Which market is better for SMEs in Malaysia?
A: ACE Market is often better for SMEs and growth companies without a long profit history, while larger, established SMEs may consider the Main Market if they meet the criteria.
Q3: How long does the IPO process usually take?
A: Depending on the market and complexity, the process can take 6–18 months. A pre-IPO advisory team helps streamline preparation.
Q4: What role do accounting services in Malaysia play in an IPO?
A: Accurate financial statements are critical. Professional accounting services ensure compliance with Bursa Malaysia’s reporting standards, boosting investor confidence.
Q5: Why is an IPO readiness assessment important?
A: It identifies gaps in compliance, governance, and financials, helping companies avoid costly delays and ensuring a smoother listing process.
Conclusion
Deciding between the ACE Market and Main Market is one of the most important strategic choices for companies pursuing an IPO in Malaysia. The right decision depends on your profitability, growth potential, capital needs, and investor base.
With the support of a trusted pre-IPO advisory team, including expert IPO readiness assessment and accounting services in Malaysia, businesses can navigate the listing journey confidently — choosing the market that best aligns with their ambitions.
For more resources:
With the support of a trusted pre-IPO advisory team, including expert IPO readiness assessment and accounting services in Malaysia, businesses can navigate the listing journey confidently — choosing the market that best aligns with their ambitions.
For more resources:
