When Malaysian businesses think of going public, many of them may have historically looked abroad. This is for many reasons, including the fact that our local market was once considered the world’s worst major stock market by Bloomberg.
But in recent times, Malaysia’s stock exchange markets have been looking more promising than ever. Sentiments have been shifting positively especially as tech giants, such as Google and Microsoft, announced billions of dollars in investments in Malaysia.
Rakuten Trade, a leading online brokerage firm in Malaysia, shared their optimism about the country’s IPO market in a press release.
This is backed up by the fact that there’s been 33 listings on the ACE Market, 10 on the Main Market, and 2 LEAP Market listings in the year. And according to the firm, the total sum is on track to hit 50 with a few more listings.
Specifically, they’re referring to 4 ACE Market and 1 Main Market listings by Cropmate, Carlo Rino, Winstar, Top Vision, and TMK Chemical.
This year, there’s been Main Market listings of 99 Speed Mart, Azam Jaya, and the recently listed Life Water. All of these have led to 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.”
Continuing strong in 2025
Based on the draft prospectus exposure, it seems like 2025 will be another bumper year for IPOs. Rakuten Trade believes 2025 most certainly will surpass this year’s record number of IPOs.
Having already achieved its KPI for IPOs in 2024, Bursa Malaysia has a target of 50 for next year.
“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,” Rakuten Trade’s Head of Equity Sales, Vincent Lau, said.
He believes that these are all key to the renewed confidence in Malaysia’s local bourse with net foreign inflows.
Bernama also reported that an analyst expects Malaysia’s equity market to maintain a stable outlook in 2025, supported by robust investment inflows, strong domestic consumption, and continued fiscal consolidation.
Playing to Malaysia’s strengths
If there’s one thing that we keep hearing this year, it’s that Malaysia is on the rise.
CNA reported that licensed financial advisor Lieu Ching Foo from Malaysia-based consultancy CC Advisory said that Bursa Malaysia has benefited from strong positive narratives that have been put forth by the Malaysian government.
One of those narratives is the fact that Malaysia’s neutral geopolitical status is a strong advantage in today’s tumultuous climate.
However, CNA also spoke to other experts who cautioned that the recovery in Malaysia’s stock market may be short-lived, considering those geopolitical tensions that are further exacerbated with the recent American election.
But if local businesses and retail investors continue to put their faith in our local market, it seems like there may be a prosperous year ahead for the country.
- Read other articles we’ve written about Malaysian startups here.
Featured Image Credit: Bursa Malaysia