IPOs in Malaysia Going Firmer in Q2 2024

Bursa Malaysia has foreseen an increase in initial public offerings (IPOs) in the Malaysia market, with higher number of the IPOs expecting to be debuting on the ACE Market. That being said, a total of 42 IPOs is expected to listed this year alone.

The first quarter of 2024 has been encouraging with a total of 9 IPOs listed successfully in the Bursa market. The momentum from the first quarter is still positive, giving a firmer push for more IPOs towards the second quarter of the year. The Q2 2024 has recorded a total of 12 IPOs listing, with 8 on the ACE Market, 3 on Main Market and 1 on the LEAP Market.

Source: Bursa Malaysia

Agricore CS Holdings Berhad, KTI Landmark Berhad, Kawan Renergy Berhad, Smart Asia Chemical Berhad, Sin-Kung Logistics Berhad, Farm Price Holdings Berhad, Topmix Berhad and SBH Marine Holdings Berhad are listed on ACE Market whilst Total Dynamic Holdings Berhad is listed on the LEAP Market. Feytech Holdings Berhad, MKH Oil Palm (East Kalimantan) Berhad and Keyfield International Berhad are the 3 listings listed on the Main Market.

Let’s start with companies that were listed on the Main Market.

Feytech Holdings Berhad ended its maiden trading day on the Main Market at RM1.10, about 37.5% gain from its initial IPO price at RM0.80.

Feytech is involved principally in the manufacturing of automotive seats and their covers and other automotive parts such as door ornaments, steering wheels, gear knobs, handbrake handles and consoles. Its customers include Mazda and Kia Malaysia along with Tier 1 automotive seat and interior manufacturers which serve automotive vehicle original equipment manufacturers.

MKH Oil palm (East Kalimantan) Berhad (MKHOP) made its debut on the Main Market slightly lower than its initial IPO price by closing around 0.8% lower at RM0.615.

MKHOP is an upstream oil palm plantation group with operations based in East Kalimantan, Indonesia. It is also a wholly-owned unit of the property developer, MKH Berhad. MKHOP is involved in the cultivation of oil palm and production and sales of crude palm oil and palm kernel.

Keyfield International Berhad made an impressive debut on the Main Market by closing at RM1.93 on its maiden trading day, a whopping 114.4% premium from its initial IPO price at RM0.90. The impressive gain represents the best maiden day trading performance of a Main Market IPO stock over the last 6 years. 

Keyfield is an Oil & Gas services firm. The company mainly charters accommodation vessels and provides related onboard services such as accommodation, catering, housekeeping, laundry and medical support services to national O&G corporation Petroliam Nasional Bhd (Petronas) and other contractors in the industry. 

Moving on to companies listed on the ACE Market.

Agricore CS Holdings Berhad made a strong debut and ended its maiden trading day on the ACE Market at RM0.875, about 75% gain from its initial IPO price of RM0.50. 

Agricore CS is mainly involved in the distribution and production of plant-based agricultural food ingredients comprising starch products, beans and pulses, grain products and other related products under its house brand i.e. Pokok Agricore. The company also produces and sells food additives and fried shallots under its house brands i.e. Bapas and Cap Pokok.

KTI Landmark Berhad made a lackluster debut on the ACE Market by closing at RM0.285, about 5% lower than its initial IPO price of RM0.30.

KTI is a Sabah-based property developer that has unique partnership with the Housing and Urban Development Board and a strong project pipeline which includes a mix of premium property and affordable housing developments. To date, KTI has delivered projects with a total GDV of RM1.2 billion.

Kawan Renergy Berhad ended its maiden trading day at RM0.465 on the ACE Market, a gain of about 55% over its initial IPO price of RM0.30. 

Kawan Renergy is an engineering service company that provides solution to a wide range of industries such as food processing, oleochemical, and chemical processing, oil and gas, waste recovery, power plant and utilities. The company is also involved in business of power generation and sale of electricity.

Smart Asia Chemical Berhad ended its first trading day on the ACE Market with 15% gain at RM0.46, or RM0.06 up from its initial IPO price of RM0.40.

Smart Asia Chemical is principally involved in developing, manufacturing, distributing and selling a diverse array of decorative paints, protective coatings for both household and industrial use, and other paint-related products.

Sun-Kung Logistics Berhad ended its maiden trading day at RM0.14, after opening flat with a slight gain of 7.7% over its initial IPO price of RM0.13.

Sin-Kung is a logistic company and owns about 460 commercial vehicles for trucking, container haulage, warehousing and distribution and other logistics-related business. Its major clientele comes from airlines, sales agents or airlines, local and international freight forwarders, manufacturers and online retailers.

Farm Price Holdings Berhad made a strong debut on the ACE Market when it ended its first trading day at RM0.41, a 71% gain over its initial IPO price of RM0.24.

Farm Price is a fresh vegetable wholesaler and distributor that also operates a retail store in Ulu Tiram, Johor, selling fresh vegetables, food and beverages products and other groceries directly to end-consumers. The company has regional distribution centers across the northern, central and southern regions of Peninsular Malaysia, along with a centralized distribution center in Johor serving both Malaysia and Singapore markets. 

Topmix Berhad ended its first trading day on the ACE Market at RM0.42, about 35% gain from its initial IPO price of RM0.31.

Topmix is a surface decorative products company that sells mainly high-pressure laminate (HPL) products used in kitchen and office cabinets as finishing under its own brand as well as in collaboration with third-party décor paper suppliers.

SBH Marine Holdings Berhad ended its maiden trading with about 16% gain from its initial IPO price of RM0.22 by closing at RM0.255 on the ACE Market.

SBH Marine is a frozen seafood company and the RM39.6 million proceeds raised from the sales of new shares will be used to develop its Selinsing farm (RM16 million), whist the rest of the proceeds will be used to construct a new seafood processing plant (RM6.5 million) and to buy equipment and motor vehicles (RM6.1 million).

Last but not least, Total Dynamic Holdings Berhad is a company that offers fleet management systems comprising a suite of cloud-based software applications to track, monitor and manage information on the movement of commercial vehicles and their drivers using GPS technology. The company also provised logistics and warehouse management systems to its customers which are mainly operating in the transportation and logistics sectors. 
Total Dynamics made its debut on the LEAP Market has made a premium gain of about 37.5% by closing at RM0.275, over its initial IPO price of RM0.20.