99SMART Takes Center Stage in Q3 with 14 IPOs in Malaysia

Moomoo News MY wrote a column · Oct 16 16:42

Malaysia's equity market and Initial Public Offerings (IPO) have experienced unprecedented growth in 2024, with performance reaching peak levels not observed in recent years.

According to Bursa Malaysia, the third quarter of the year alone saw 14 companies go public, raising a total of MYR 3.9 billion through new offerings. This cohort includes three companies on the Main Market and 11 on the ACE Market. As of Tuesday, the cumulative total for the year has reached 39 IPOs, surpassing the annual totals of previous years, marking a significant milestone for the local exchanges.

99SMART Takes Center Stage in Q3 with 14 IPOs in Malaysia

Datuk Mohammad Faiz Azmi, Chairman of the Securities Commission, credits this uptick in Malaysia’s equity market and IPO activity to positive domestic economic circumstances, a rebound in corporate earnings, and encouraging government policies.

As we enter the fourth quarter of 2024, I'd like to highlight the positive momentum in the Malaysian equity market, which has reached new highs not seen in the last four years.

Performance of New Listings in 2024

Here is an overview of the IPO performance for the third quarter and the first half of the year:

From a sector perspective: As of the Tuesday, the 14 new listings in Q3 on the Main and ACE Markets closed at an average premium of 52.06% over their listing prices. During the first three quarters, the Construction sector topped the charts in share price performance, notably boosted by the significant gains of $UUE (0310.MY)$, a provider of underground utilities engineering solutions.

From individual stocks perspective: As of Tuesday, 29 stocks have closed above their IPO prices, while 4 have settled below their listing prices. Leading the pack, Transportation IT solution provider $GOHUB (0311.MY)$saw its share price soar by 217.14%. It was closely followed by underground utilities engineering solutions provider UUE, which closed 195.83% above its list price, reflecting strong investor confidence in its expansion plans within the horizontal directional drilling (HDD) and high-density polyethylene (HDPE) pipe manufacturing sectors. Power cable manufacturer $MTEC (0295.MY)$also performed impressively, closing the quarter at a 184.9% premium over its list price (2Q2024: +200%), securing the third spot in terms of share price gains.

A standout IPO in Q3 was $99SMART (5326.MY)$, which went public on the Main Market on September 9. This leading local mini-market retail chain made a splash on its first trading day, with 422 million shares changing hands, valued at MYR 793 million, making it one of the most active stocks of the day. As of Tuesday, the company's market cap stood at approximately MYR 21 billion. Since its listing, the stock has accumulated a gain of about 50%, propelling it into the top 30 stocks on the Malaysian exchange, where it currently ranks 26th.

Upcoming IPOs

Here are the upcoming IPO plans on Bursa Malaysia.