Bursa Malaysia Listing Requirements in 2026: Main Market vs ACE Market

For a Malaysian company considering an IPO, one of the first questions is often:

“Should we list on the Main Market or the ACE Market?”

The answer starts with the company’s size, profitability, operating history and growth stage. But there is more to the decision than simply looking at the minimum profit requirement.

The Main Market and ACE Market are designed for different types of companies and operate under different admission frameworks.

In 2026, the distinction has become even clearer following changes introduced by the Securities Commission Malaysia.

For companies considering a listing, understanding these requirements early can make a significant difference. An IPO is not something that begins when the prospectus is being written. The preparation usually starts several years earlier.

The Main Market and ACE Market serve different purposes

The Main Market is Bursa Malaysia’s market for larger and more established corporations.

The ACE Market is a sponsor-driven market designed primarily for small and mid-sized corporations with growth potential.

The SC’s 2026 market segmentation review reinforced this distinction and positioned ACE as a stepping stone towards the Main Market.

This distinction matters because a company should not approach the two markets simply as two different versions of the same IPO.

The eligibility criteria, adviser structure and expectations are different.

Main Market: the key admission routes

For an ordinary operating company seeking a Main Market listing, there are three principal routes under the current Equity Guidelines.

1. Profit test

Under the revised 2026 requirements, an applicant must have:

• Aggregate after-tax profit of at least RM30 million for the most recent three full financial years; and
• After-tax profit of at least RM15 million for the most recent financial year.

The applicant or the company within the group that is the single largest contributor to the group’s average after-tax profit must also have operated in the same core business throughout the relevant profit track record period. Contributions from associated companies must not exceed those from subsidiary companies.

This is a significant change from the older RM20 million aggregate and RM6 million latest-year thresholds that still appear on many websites and IPO guides.

For a company preparing for a listing in 2026 or later, using the old figures could give management a misleading picture of its readiness.

2. Market capitalisation test

A company can also qualify through the market capitalisation route.

The ordinary shares of the applicant must have a total market capitalisation of at least RM500 million, based on the issue or offer price stated in the prospectus and the enlarged issued share capital upon listing.

The applicant, or the corporation within the group representing the core business, must also have been incorporated and generated operating revenue for at least the most recent full financial year.

This route can therefore be relevant to companies with strong growth prospects and substantial valuation even where their profitability does not yet satisfy the profit test.

However, meeting the RM500 million threshold does not by itself mean that a company is ready for listing.

The SC also considers the company’s financial position, management, business, governance and other qualitative matters.

3. Infrastructure Project Corporation test

A separate route applies to qualifying infrastructure project corporations.

The applicant must have the right to build and operate an infrastructure project with project costs of at least RM500 million, together with a government or state agency concession or licence having at least 15 years remaining at the time of listing.

There are specific provisions for renewable energy infrastructure projects and certain circumstances involving shorter concession periods.

For most operating businesses considering an IPO, however, the profit test or market capitalisation test will be the more relevant routes.

Main Market financial readiness goes beyond profitability

One of the important changes in 2026 is that the discussion should no longer stop at the profit figure.

The applicant must have sufficient working capital for at least 12 months from the date of the prospectus.

For companies listing under the profit test, there must also be no accumulated losses based on the latest audited financial statements.

The SC will consider whether the applicant has generated positive cash flow from operating activities over the most recent three full financial years, or since commencement of operations where the relevant period is shorter.

In addition, the reporting accountants must not have expressed a modified opinion, and there must be no statement of material uncertainty related to going concern in the audited financial statements contained in the accountants’ report.

This is an important distinction.

Profit is not the same as cash.

A company may report attractive profits while experiencing significant working capital pressure.

For a prospective listed company, management needs to understand both.

Management continuity matters

The SC also looks at management continuity and capability.

Generally, the applicant must have had substantially the same management for the most recent three full financial years.

The current executive directors should have had direct management responsibility and played a significant role in the business, while senior management should not have changed materially.

There is also a specific requirement that the chief financial officer, finance director or equivalent must have been appointed at least six months before submission to the SC.

This is particularly relevant to founder-led companies.

A business may have excellent commercial performance but still depend heavily on one founder or a small number of individuals.

An IPO changes that dynamic.

Investors will expect the company to have a management structure capable of operating the business beyond the founders themselves.

ACE Market: no minimum profit requirement

The ACE Market works differently.

There is no prescribed quantitative profit or operating track record requirement for initial admission to the ACE Market.

Instead, the ACE Market operates under a sponsor-driven framework.

The listing sponsor plays an important role in assessing whether the applicant is suitable for listing, including its business prospects, corporate governance, board and management, conflicts of interest, internal controls, risk management and ability to comply with the Listing Requirements.

This makes ACE particularly relevant to companies that have strong growth prospects but have not yet reached the financial thresholds required for a Main Market listing.

But there is an important misconception to avoid.

“No minimum profit requirement” does not mean “no requirements”.

The company still needs to demonstrate that it is suitable for listing.

The sponsor will undertake substantial due diligence and will need to be satisfied with the company’s business, governance, systems, management and prospects.

What both markets still require

Regardless of whether a company targets the Main Market or ACE Market, the preparation extends well beyond the financial statements. A prospective issuer should expect detailed review of areas such as:

Corporate structure

The group structure needs to be clear.

This includes subsidiaries, associates, joint ventures, shareholders and beneficial ownership.

Complex structures are not necessarily prohibited, but management needs to be able to explain why they exist and how the businesses fit together.

Related party transactions

Transactions with directors, shareholders and connected companies receive significant attention.

The SC’s Equity Guidelines require transactions entered into with related parties before listing to be on terms and conditions that are not unfavourable to the applicant.

Trade debts that exceed normal credit periods and non-trade debts owing by interested persons must also be settled before listing.

This is where many privately held businesses need to do some housekeeping.

Loans to directors, shareholder balances, related company transactions, management fees, rental arrangements and other connected transactions should be identified and properly documented well before the IPO process.

Internal controls

A listed company cannot operate entirely on informal processes.

• The finance function needs to be able to close the accounts reliably.
• Management needs appropriate approval processes.
• Responsibilities need to be clear.
• Important transactions should have supporting documentation.

Controls need to work consistently, not only when the audit team is around.

Corporate governance

The board structure, independent directors, board committees and governance policies need to be considered early.

The company should also assess whether the existing directors and senior management have the experience and capacity required to operate as a listed company.

Financial reporting

The financial reporting process needs to be capable of producing reliable information within the required reporting timetable.

This is one reason why companies considering an IPO should start strengthening their finance function before appointing an investment bank.

A listed company does not get more time simply because the finance team is still waiting for someone to finish the accounts.

Public shareholding requirements

Listing also involves requirements relating to the distribution of shares among public shareholders.

For the Main Market, the existing framework generally requires at least 25% of the listed shares to be held by the public, together with a minimum number of public shareholders. The current Bursa framework provides for at least 1,000 public shareholders holding not less than 100 shares each for Main Market admission.

For ACE, the corresponding public spread requirement is generally 25%, with at least 200 public shareholders holding not less than 100 shares each. Bursa may accept a lower percentage where it is satisfied that the lower percentage is sufficient for a liquid market.

There are also specific rules concerning the minimum portion offered to the general public in an IPO. Under the revised Main Market framework, where a general public offering is undertaken, the balloted portion must be at least:

The detailed application of these requirements depends on the structure of the listing proposal.

For ACE, the 2026 framework also reinforces the minimum public allocation rules where a public offering tranche is undertaken.

Bumiputera equity requirements should be considered early

Another area that should not be left until the end of the IPO process is the Bumiputera equity requirement.

For a company with predominantly Malaysian-based operations seeking a Main Market listing, the current framework generally requires allocation of 12.5% of the enlarged issued shares to approved or recognised Bumiputera investors at the point of listing, subject to the applicable rules and exemptions.

For ACE Market companies, the 12.5% requirement is generally triggered later, with the relevant deadline being the earlier of one year after achieving the Main Market profit requirements or five years after listing on ACE.

There are exemptions and different treatments for certain companies, including companies with predominantly foreign-based operations and certain Malaysia Digital or BioNexus-related circumstances.

This is therefore something the principal adviser and legal advisers should assess based on the specific group structure.

Moratorium on promoters’ shares

Founders and other specified shareholders should also understand the moratorium requirements.

For a Main Market listing under the profit test or market capitalisation test, the relevant shareholders generally cannot sell, transfer or assign their moratorium securities for six months from the date of listing.

There are additional rules for infrastructure project corporations and certain other situations.

The ACE Market also has moratorium requirements, and the 2026 market segmentation reforms removed previous exemptions that could apply in certain circumstances.

The practical point for founders is simple:

An IPO does not necessarily mean that existing shareholders can immediately sell their shares after listing.

The exact moratorium treatment should be modelled as part of the IPO planning process.

Main Market vs ACE Market at a glance

The table is a high-level summary only. Specific industries, corporate structures and listing routes can result in additional requirements.

Can a company list on ACE first and move to Main Market later?

Yes.

The ACE Market provides a pathway for qualifying companies to transfer to the Main Market.

Under the revised 2026 Equity Guidelines, a company seeking a normal transfer from ACE to Main Market must have been listed on ACE for at least two full financial years before submission to the SC.

It must then satisfy the relevant Main Market requirements, including the applicable profit, market capitalisation or infrastructure project test.

The applicant must also have satisfactory financial statements, sufficient working capital and continuity of substantially the same management.

There is also an accelerated transfer process.

Under this route, the company must have been listed on ACE for at least 12 months and have a daily market capitalisation of at least RM1 billion for the six months immediately preceding submission, together with other requirements including the Main Market profit requirements and continuity of the same core business.

This creates a structured progression:

Private company→ACE Market→Main Market

For some businesses, that may be a more realistic capital markets journey than attempting to meet every Main Market requirement immediately.

The real question is not “Can we IPO?”

For a business owner, the first assessment should probably not be:

“Which market can we qualify for?”

A better starting point is:

“Is the business ready to operate as a public company?”

That means looking at the business from several angles.

Financially

Is the business generating sustainable profits and cash flow?

Operationally

Can the organisation scale without depending excessively on a few individuals?

Governance

Can the board operate effectively with greater shareholder scrutiny?

Financial reporting

Can the finance team close and report accurately within the required timetable?

Controls

Are key processes documented and consistently applied?

Ownership

Are the group structure, shareholder arrangements and related party transactions clean?

Strategy

Is there a credible growth story beyond the IPO itself?

Management

Can the existing leadership team operate a larger, more transparent organisation?

These questions are often more useful than simply checking whether the company has crossed a particular revenue or profit number.

IPO readiness starts before the IPO

A company should ideally begin preparing well before the formal listing exercise.

For example, if management expects to pursue a listing in three years, now may be the appropriate time to review the group’s structure, strengthen the finance team, clean up related party balances, improve internal controls, formalise governance processes and ensure that financial reporting is consistent and reliable.

The objective is not merely to satisfy Bursa Malaysia’s requirements.

It is to build a company that can withstand the scrutiny that comes with being listed.

The prospectus may tell investors where the company is going.

The historical financial statements, governance structure and internal controls tell them how the company got there.

A successful IPO is therefore not simply a listing exercise. It is the transition from running a private business to running a public company.

Source: Securities Commission Malaysia, Equity Guidelines (revised 28 May 2026); Bursa Malaysia Main Market and ACE Market Listing Requirements.