KUALA LUMPUR: Malaysia's initial public offering (IPO) market remains vibrant, with increasing participation from both institutional and retail investors.
To date, the market has seen 33 listings on the ACE Market, 10 on the Main Market, and two on the LEAP Market, with projections to reach 50 listings this year.
Upcoming additions include four ACE Market listings and one Main Market listing from companies such as Cropmate Fertilizer Sdn Bhd, Carlo Rino Group Berhad, Winstar Global Sdn Bhd, Top Vision Eye Specialist Berhad, and TMK Chemical Corporation Berhad.
Rakuten Trade head of equity sales Vincent Lau said this has reflected the growing interest in capital markets.
Lau said 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," he said in a statement.
Based on the draft prospectus exposure, Rakuten said 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.
Rakuten Trade chief executive officer Kazumasa Mise said 99 Speed Mart was the firm's top-traded IPO stock in 2024, attracting over 2,000 clients on listing day.
He said this, along with strong performances from Master Tec Group Berhad, Heng Huat Resources Group Berhad, Kawan Food Berhad, and UUE Holdings Berhad, demonstrates the investor appetite for quality IPOs.
"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," he said.