Bursa Malaysia’s 2024 IPO Mania Continues to Gain Momentum
KUALA LUMPUR, 26 November 2024 - Rakuten Trade, the leading online brokerage firm in Malaysia, today shared their optimism about the country's vibrant IPO market. So far with 33 ACE Market, 10 Main Market, and 2 LEAP Market listings and it is on track to hit 50 with a few more listings: 4 ACE Market and 1 Main Market (Cropmate, Carlo Rino, Winstar, Top Vision, and TMK Chemical).
According to their Head of Equity Sales, Vincent Lau, “The local IPO market has seen increasing participation from both institutional and retail investors, reflecting the growing interest in capital markets. Malaysia is now leading the market for IPOs in the region due to the attractive valuations, the conducive and supportive regulators —Bursa Malaysia, Securities Commission — the government's clear business-centric framework, and improving fundamentals. These are all key to the renewed confidence in our local bourse with net foreign inflows.”
Based on the draft prospectus exposure — 2025 will be another bumper year for IPOs and most certainly will surpass this year’s record number of IPOs. Bursa Malaysia has a target of 50 for next year, having already achieved its KPI for IPOs in 2024.
Main Market listings of 99 Speed Mart, Azam Jaya, and the recently listed Life Water showed a renewed interest among retail investors. Mr Kazumasa Mise, CEO of Rakuten Trade, highlighted the strong performance of 99 Speed Mart, “99 Speed Mart was our top-traded IPO stock in 2024, attracting over 2,000 clients on listing day. This, along with strong performances from Master Tec Group, HE Group, Kawan Renergy, and UUE Holdings, demonstrates the investor appetite for quality IPOs.”
Mise also emphasized the importance of a long-term investment perspective, “The IPO market is not a ‘day 1 buy-and-sell.’ Investors should have a longer-term view. These are growth stories, with companies progressing from LEAP Market to ACE Market and eventually to the Main Market.”
Rakuten Trade empowers investors with comprehensive coverage of pre-listings, knowledge, and tools. Its Equity Sales team offers in-depth analysis and insights through webinars, where clients can directly engage with the company’s top management and gain valuable insights into their business outlook and growth potential. To further enhance investor accessibility, Rakuten Trade’s issues a 1-pager research report and their target price for the stock on listing day. Brokerage fees for all trades on the company's listing day are also waived to encourage retail participation of the newly listed stock.
Lau added, “The positive global economic outlook, coupled with strong domestic fundamentals, positions Malaysia's equity market for continued growth. Factors such as lower interest rates, China's stimulus measures, and the EPF's strong investment performance, which is likely to result in a 6% dividend rate, are poised to improve investor sentiment and drive further momentum in the equity market.”
