| 1.0 | Introduction |
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| 1.1 | The Exchange classifies all applicants seeking admission on the Official List as well as listed corporations into homogenous group ("Sectors") of a similar industry based on the applicants' or listed corporations' core business. |
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| 1.2 | Pursuant to Bursa Malaysia Securities Berhad ACE Market Listing Requirements ("Listing Requirements"), an applicant is required to propose its classification into any one of the Sectors ("Classification") and a listed corporation is also required to make a proposal to the Exchange whenever a change to its Classification becomes necessary. |
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| 1.3 | The Classification
proposed by an applicant or a listed corporation shall be subject to the
approval of the Exchange. The Exchange reserves the right to classify an
applicant or listed corporation into a Sector which in the opinion of the
Exchange is more appropriate for the applicant or listed corporation. |
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| 1.4 | This Guidance Note
sets out the following: |
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| | (a) | the Sectors that are prescribed by the Exchange; |
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| | (b) | the criteria in
determining and proposing the Classification; and |
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| | (c) | the manner in which
an applicant or listed corporation is to inform or notify the Exchange of its
proposed Classification or proposal for change in Classification, as the case
may be. |
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| 2.0 | Sectors prescribed by the Exchange List of Sectors |
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| 2.1 | The Exchange will prescribe the Sectors for all listed corporations, from time to time. The list of Sectors can be obtained from the Exchange's official website. |
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| 2.2 | The Exchange reserves
the right to vary the list of Sectors or the criteria when determining the
Classification of a listed corporation and in that event, a listed corporation
would be notified of its new Classification accordingly. |
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| 3.0 | Classification of
listed corporations Classification Form |
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| 3.1 | An applicant or a
listed corporation must, when filing an application for listing to the
Exchange, furnish the Exchange a proposal of its Classification by completing
and submitting to the Exchange the Classification/Re-Classification Form (which
is available on the Exchange’s official website), together with supporting
documents. |
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| 3.2 | In determining the
Classification of the applicant or listed corporation into any one of the
Sectors, an applicant or a listed corporation must examine the amount of
contribution made by its various business activities for the past 2 years. A
listed corporation will be classified into the Sector which most closely fits
its source of revenue or if there are several sources of revenue, the business
which consistently generates the highest revenue of the listed corporation. The
Classification will also be determined based on either the immediate end use of
the product or the industry processes used. |
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| 3.3 | Segmental reporting
normally discloses revenue before tax, minority interests, extraordinary items
and interest earned or incurred. Unless there is audited evidence that any of
these items is specifically attributable to a class of business for which the
revenue is disclosed, it will be disregarded in assessing the sources of
revenue. Where any part of the listed corporation’s business is to earn
interest or incur interest, or interest expenses are central to its business,
then such interest shall be taken into account in determining the listed corporation’s
business. |
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| 3.4 | The Exchange will
seek to maintain stability in the Classification and will disregard what the
Exchange considers to be temporary fluctuations in the fortunes of individual
businesses. |
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| 4.0 | Exchange’s power to require additional information or
instruct change in Classification |
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| 4.1 | The Exchange may, at
its discretion, require an applicant or a listed corporation to provide
additional information to the Exchange. |
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| 4.2 | The Exchange may,
where the circumstances warrant the same but without assigning any reasons,
classify an applicant or change the Classification of a listed corporation into
a Sector which, in the opinion of the Exchange, is more appropriate for the
applicant or listed corporation. |
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| 5.0 | Changes to listed corporation’s Classification |
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| 5.1 | Where there is a significant change in the business direction or policy in a listed corporation, the listed corporation must, upon completion of the relevant corporate exercise, immediately notify the Exchange of the proposal for change in its Classification by completing and submitting to the Exchange the Classification/Re-Classification Form (which is available on the Exchange's official website), together with supporting documents. |
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| 5.2 | Where the Classification does not accurately reflect its current core business, the listed corporation must submit to the Exchange a proposal for a change by completing and submitting to the Exchange the Classification/Re-Classification Form (which is available on the Exchange's official website), together with supporting documents. |
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| 5.3 | A listed corporation’s
Classification may also be reviewed by the Exchange either at its discretion,
at the request of the listed corporation pursuant to paragraphs 5.1 and 5.2
above, or of the advisers acting on its behalf. |