Weekly Market Pulse #Jun. 24 'Unveiling the IPO using moomoo app'

DJI +1.45%, S&P500 +0.61%, NASDAQ +0.01%.

A robust US economy has propelled Wall Street stocks to record levels and dissuaded the Federal Reserve (Fed) from cutting interest rates from their 23-year high of 5.25% to 5.5%.

Event to watch: 25 Jun US CB Consumer Confidence, 26 Jun US New Home Sales, 27 Jun US GDP & US Initial Jobless Claims, 28 Jun US Core PCE Price Index.

KLCI went down by - 1.05%, closing at 1,590.37, breaking the 1,600 support.

The KLCI market experienced a five-day downturn amid investor concerns and market volatility.

Event to watch: 24 Jun MY CPI & FX Reserve (USD), 28 Jun MY Money Supply.

An Initial Public Offering (IPO) in the Malaysia Bursa Market is the process through which a private company offers its shares to the public for the first time. This allows the company to raise capital from public investors. The Bursa Malaysia, which is the main stock exchange in Malaysia, regulates and oversees the IPO process.

Determining whether an IPO is successful or "good" involves analyzing various factors before and after the IPO. Here are some key indicators:

Strong Financial Performance:

Revenue and Profit Growth: Consistent and robust growth in revenues and profits over several years.

Healthy Margins: Strong gross, operating, and net profit margins.

Solid Balance Sheet: Low levels of debt, high liquidity, and good asset management.

Market Position and Brand Strength:

Competitive Advantage: Unique products, services, or technologies that provide a competitive edge.

Market Share: Significant and growing market share in its industry.

Brand Recognition: Strong brand presence and customer loyalty.

Industry and Market Conditions:

Industry Growth: Operating in a growing industry with positive long-term prospects.

Economic Conditions: Favorable macroeconomic conditions that support business growth.

Management Team:

Experienced Leadership: A proven and capable management team with a track record of success.

Corporate Governance: Strong governance practices and ethical management.

Valuation and Pricing:

Fair Valuation: Reasonable and justifiable valuation based on the company's financials and market conditions.

Pricing Strategy: A well-thought-out pricing strategy that balances maximizing capital raised with investor returns.

Demand and Subscription Levels:

Oversubscription: High levels of demand and oversubscription, especially from institutional investors.

Investor Interest: Strong interest from high-quality institutional investors and reputable anchor investors.

Quality of Advisors and Underwriters:

Reputable Advisors: Engaging reputable investment banks, legal firms, and auditors.

Effective Marketing: Successful roadshows and marketing campaigns to generate investor interest.

MR DIY Group (M) Berhad: MR DIY, a home improvement retailer, successfully listed on Bursa Malaysia in 2020, raising significant capital and achieving a strong market presence.

Pre-IPO Financial Health: Strong revenue and profit growth, solid balance sheet.

Market Position: Leading position in the home improvement retail sector in Malaysia.

Management and Governance: Experienced management team with a clear growth strategy.

Valuation and Pricing: Attractive valuation and pricing strategy that appealed to investors.

Demand: High demand and significant oversubscription from institutional and retail investors.