Markets
Bridging the funding gap
Stephanie Jacob | 11 Aug 2017 00:30
Bursa Malaysia’s newly-launched Leading Entrepreneur Accelerator Platform (LEAP) market for small and medium enterprises (SMEs) has seen good response as more than 40 companies are said to be eyeing a listing on it.

SMEs seem to welcome the prospect of tapping into capital market funding as previously they turned to banks.

However, other players are more circumspect and have raised concerns. A recurring question seems to be whether there is adequate liquidity in the market for the LEAP candidate companies to raise funds from. This is largely due to the rule that only sophisticated investors may invest in the LEAP market.

The qualified investors are individuals with more than RM3 mil in assets or earn a yearly individual income of more than RM300,000 or RM400,000 in the case of husband and wife combined. Elsewhere, corporate investors, partnerships and trusts are required to have net assets of RM10 mil or more to buy stakes in these newly-listed entities.

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