Malaysia's IPO Surge, Market Outlook Remains Robust

Moomoo News MY wrote a column · Nov 18 17:22

As 2024 comes to a close, Malaysia has reported a third-quarter GDP growth of 5.3%, demonstrating strong economic resilience. Robust investment and financing activities have been a key support factor, with 46 companies completing Initial Public Offerings (IPO) this year, marking the highest level in nearly five years.

Malaysia's IPO Surge, Market Outlook Remains Robust

According to Bursa data, there have been 11 companies listed in the fourth quarter to date, raising a total of 798 million ringgit, with the majority coming from the ACE Market. Three companies have been listed on the Main Market, and the average IPO day gain is 13.92%, which represents a slight decrease compared to the previous two quarters.

In the third quarter, a total of 14 companies were listed, with an average IPO day gain of 75.9%. Notable examples include potential blue-chip stock $99SMART (5326.MY)$ and $UUE (0310.MY)$ , which saw a remarkable debut surge of 189%. As of last Friday, newly listed stocks from the third quarter still maintained an average gain of 67%.

The CEO of Bursa Malaysia, Datuk Muhamad Umar Swift, expressed satisfaction with the momentum of IPO developments, noting that three companies were listed on the Main Market just last week. He stated:

"This surge reflects a thriving capital market, strong regulatory support, and a diverse investor base. Malaysia has experienced a bull market, making us the ASEAN exchange with the highest number of IPOs so far this year".

Performance of Newly Listed Stocks in 2024

Here is an overview of the performance of IPOs in the fourth quarter to date and in November:

From an industry perspective, both the construction and manufacturing sectors have seen companies go public with commendable performances. The Malaysian construction industry continued to lead the economy in the third quarter, reaching 41.1 billion ringgit, a year-on-year increase of 22.9%. Notably, the construction sector newcomer $AZAMJAYA (5329.MY)$ saw an impressive debut, with its stock price rising over 39% on the first day of trading.

In the manufacturing sector, Malaysia is committed to transforming and promoting the growth of high-value, technology-driven industries, further advancing the development of the data center industry. The semiconductor manufacturing company $3REN (0328.MY)$ also experienced a strong debut, with its stock price increasing by over 41% on its first day of listing.

From an individual stock perspective, as of last Friday, among the companies listed in the fourth quarter, 8 stocks closed above their IPO prices, while only 1 stock closed below its IPO price. Among the companies listed in November, the best first-day performance was seen by $LWSABAH (5328.MY)$, a beverage manufacturer from Sabah, which surged by 44% on its debut. The most stable performer was $AZAMJAYA (5329.MY)$, which continued to maintain a strong performance with an increase of over 45% after its listing.

Bursa Malaysia has successfully completed 46 IPOs to date, surpassing its initial target of 42 IPOs for the year. Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, indicated that as the Malaysian stock exchange continues to attract IPOs, he expects this momentum to inspire small and medium-sized enterprises (SMEs) to seek similar growth opportunities, paving the way for a positive outlook for 2025.

Upcoming IPOs

Here are the upcoming IPO plans on Bursa Malaysia: