IPO Performance in Q3 2023

The Malaysian economy expanded moderately in the second quarter of 2023 to 2.9%, weighed down mainly by slower external demand. The domestic demand remained the key driver of growth supported by private consumption and investment. The first half of the year (H1 2023) has seen a total of 16 IPOs in the market and the positive achievements from these IPO results have brought forth a strong momentum for companies to list in the local market. 

In the third quarter (Q3 2023) of the year alone, we are seeing another 9 listings, 7 IPOs on the Ace Market whilst the rest are listed on Main Market. Companies listed on Ace Market are Evergreen Max Cash Capital Bhd, Mercury Securities Group Bhd, Glostrext Bhd, KGW Group Bhd, Daythree Digital Bhd, MYMBN Bhd and DC Healthcare Holdings Bhd. The renowned Skyworld Development Bhd and MST Gold Group Bhd are both listed on the Main Market.

Source: Bursa Malaysia

Let’s start with companies listed on Main Market.

Skyworld Development Bhd made a flat debut on the Main Market and close lower than its IPO price at RM0.74, around 7.5% from its initial IPO price of RM0.80. At its closing price, the group’s market capitalization stood at RM740 million.

Skyworld Development Bhd is a well-known award-winning property developer. With its current development concentrating mostly in the KL city center, Skyworld intends to expand beyond KL, into Subang Jaya, Petaling Jaya, Selayang and Ampang Jaya. In its future plan, Skyworld is seeking to venture into the Vietnam market in the next 3 years with its ultimate goal of becoming a regional player.

MST Golf is the fifth company this year to close below its IPO price. MST Gold ended its debut at RM0.78, about 3.7% lower than its IPO price of RM0.81. Based on its closing price of RM0.78, the company has a market capitalization of RM640.28 million.

MST Golf is an established golf equipment retail chain operator with a strong clientele base within the gold community. It is also a well-known B2C company with reputable brand name and management system.

Moving forward to companies listed on Ace Market.

DC Healthcare made its debut recently on the Ace Market and close at RM0.45, an 80% premium from its initial IPO price of RM0.25.

DC Healthcare is an aesthetic medical services provider, providing aesthetic services, general medical services and sale of skincare products. The company has a market presence in Negeri Sembilan, Selangor, Johor and Kuala Lumpur.

MYMBN Bhd made a debut on the Ace Market and closed at RM0.27, about 28% higher than its initial IPO price at RM0.21. 

MYMBN is a bird’s nest processing company and the proceed will be used in the group’s expansion plans which include processing and sale of RCEBN and venturing into halal ready-to-drink bird’s nest products.

Daythree Digital Bhd made an impressive debut on the Ace Market by closing at RM0.625, a premium 108% from its initial IPO price of RM0.30. Daythree’s market capitalization was RM300 million.

Daythree Digital is a tech-driven global business services (GBS) company and its growth is said to be driven by the expansion of office space with setup of new customer experience delivery offices meant for new clients expected to be secured, recruitment of industry exports, setup of network monitoring center and strengthening of branding effrots.

KGW Group Bhd made a moderate debut on the Ace Market by closing at RM0.23, slightly less than 10% of its initial IPO price at RM0.21. KGW has a market capitalization of RM111.04 million.

KGW Group is a freight services provider that provides end-to-end freight services mainly for Malaysian exports to US. Through its subsidiaries, KGW Group is involved in the provision of logistics services, including ocean freight services, air freight services, freight forwarding services, warehousing and distribution of healthcare-related products and devices.

Glostrext Bhd made a 32% premium when it closed at RM0.255 on its debut day on the Ace Market, from its initial IPO price of RM0.19. Glostrext’s market capitalization amounted to some RM104 million.

Glostrext is in the business of providing piling, structural and geotechnical-related services, covering instrumentation, testing and monitoring services to construction projects and completed buildings and infrastructure.

Mercury Securities Group closed at RM0.30 on its debut day for a premium of 20% over its initial IPO price of RM0.25. 

Mercury Securities Group is a leading securities and corporate finance advisory firm. The group’s future plans are to add more offerings to its trading platform such as robo-advisors and algorithmic trading software. They are also looking to introduce its product offerings and services beyond Malaysia.

Evergreen Max Cash Capital Bhd (EMCC) closed at RM0.315 on its debut day on the Ace Market, about 31% premium from its initial IPO price of RM0.24. The group raised a total of RM64.2 million from the IPO.

EMCC is a pawnbroking service provider and the group is confident the pawnbroking industry will continue to grow as it remain a preferred choice for short-term financing particularly amongst the unbanked and underbanked population.