Labuan International Financial Exchange

LISTING OBJECTIVE.

The listing objective is to establish a balance between providing issuers with access to the capital market at the earliest possible opportunity, while providing investors with sufficient protection and with sufficient and timely information to enable them to make informed decisions as to the value and merits of the instruments. The following criteria are only guidelines and non-compliance may not in itself disqualify a particular financial instrument for listing.

QUANTITATIVE CRITERIA.

Initial Public Offering/Funds/Debt Issuance

The respective issuance for listing should not be less than USD2 million for equity, USD50 million for investment funds and USD100 million for debt securities.

Shareholding Spread

Minimum number of shareholders (including employee) should not be less than 250 for equity and 25 for debt securities. However, spread with less than the above may be considered with justification.

Business Operation

Minimum period of business operation should not be less than two (2) years. However, operation with less than two years may be considered with justification.

Historical Profit Performance

Provide at least the most recent audited accounts (for company in operation for more than a year) or an audited statement of net assets (for company in operation for less than a year).

Asset Backing

Company’s NTA or Enterprise Value per share upon listing should not be less than its equal or par value.

QUALITATIVE CRITERIA.

Business Dynamics

• Company is managed by a management team that has the relevant qualifications and experiences in similar field in which the company is involved.
• High technology companies which provide a significant portion of its revenue towards R&D will have an advantage as it reflects commitment to further enhance and develop the growth of the company.

Industry Dynamics

• Company has high barriers to entry and exit.
• Company has encouraging past and future growth trends/prospects.

Conflict of Interests

InterestsDisclosure of the nature, character and extent of conflict of interests between the company and directors or promoters or substantial shareholders to the public.

Assessment of Vulnerability & Risks

Disclosure of all material business and financial risks and measures taken to mitigate/minimise such risks.

Independence of Business

Company is fully operational, is independent and autonomous i.e. not investing in another listed company.