IPO Remains Robust in 2024

In 2023, Bursa Malaysia experienced 32 listings, and this momentum is expected to continue for the current year. The stock exchange operator fell short of its initial target of 39 IPOs in 2023, primarily due to lower-than-expected listings on the LEAP market, resulting in a total of 33 IPOs by the end of the year. The LEAP Market, designed as an adviser-driven platform, seeks to offer emerging companies, including small and medium-sized enterprises, access to capital from sophisticated investors. 

Looking ahead, the IPO pipeline for this year remains robust. Bursa Malaysia foresees an increase in initial public offerings (IPOs), particularly on the ACE Market, aiming for 42 IPOs this year. 

Source: Bursa Malaysia

The first quarter of the year has seen a total of 9 IPOs listing in the Bursa, 8 on the ACE Market and one on Main Market. KJTS Group Berhad, Master TEC Group Berhad, HE Group Berhad, TSA Group Berhad, Wentel Engineering Holdings Berhad, AGX Grooup Berhad and Zantat Holdings Berhad are listed on ACE Market whilst Prolintas Infra Business Trust is listed on the Main Market.

Let’s start with Prolintas Infra Business Trust that was recently listed on the Main Market.

Prolintas Infro Business Trust, managed by Prolintas Managers Sdn Bhd, made its debut recently on the Main Market at RM0.95, same as its IPO price and ended the maiden trading day at RM0.97, an increase of about 2.11% from its IPO price, with a market capitalisation of about RM1.05 billion.

Prolintas Infra comprises four matured highways namely Ampang-Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning-Shah Alam (LKSA), and Sistem Lingkaran Lebuhraya Kajang (SILK), with an average remaining concession period of approximately 32 years. The highways serve almost 500,000 road users every day.

Moving forward to companies listed on the ACE Market. 

Zantat Holdings, a calcium carbonate producer, made its debut at RM0.40 during opening at the ACE Market and ended its maiden trading day at RM0.375, a 50% premium over its IPO price of RM0.25, with a market capitalization of RM105 million.

The company is expecting the glove industry to recover in the H2 of the year so the company’s product which is mainly used as fillers in the industry could generate extra revenue. India accounts for 60% of the company’s total revenue, and the demand from India is expected to remain strong. The company is also planning for its expansion plan to Australia, New Zealand and Europe with its new bioplastic products.

Alpha IVF Group Berhad, a fertility care company, debuted flat at RM0.32 after its IPO, the largest ever on the ACE Market, raised RM466.5 million. Its market capitalization stood at RM1.56 billion, based on a share capital of 4.86 billion shares.

The company mainly focuses on assisted reproductive services with a strong emphasis on in-vitro fertilization. The company currently operates two centers in Malaysia and one in Singapore. 

AGX Group Berhad, a freight forwarding and aerospace logistics provider, had a robust opening debut on the ACE Market with a premium of 17% (RM0.41) but succumbed to selling pressure and ended its maiden trading day at RM0.36, about 2.86% from its IPO price of RM0.35.

As part of the company’s expansion plan, the company will setup a new warehouse and office in Port of Tanjung Pelepas (PTP), Johor to complement its operations in Singapore. The company also plan to setup an office in Penang to improve its coverage in the northern region of Malaysia, as well as one in Busan, South Korea to support its sea freight business division. AGX also reiterated its commitment to focusing on aerospace segment, which accounted for 37% of its revenue base.

Wentel Engineering Holdings Berhad, a metal fabricator company, ended its maiden trading day at RM0.28 (7.69%) after opening flat on its ACE Market debut at RM0.26. The company’s market capitalization was RM322 million based on an enlarged share capital of 1.15 billion shares.

The proceeds will be used for the construction of a new manufacturing plant in Johor and the purchase of new machinery and equipment. The plant is expected to commence operations in H2 2025.

TSA Group Berhad, stainless steel products supplier, ended its maiden trading day at RM0.575 (4.6%) from its IPO price of RM0.55. The group’s market capitalization stood at RM177.73 million.

The proceeds will be used for repayment of bank borrowings (RM20 million), working capital (RM12.33 million), new production facility (RM5.1 million) and listing expenses (RM5.1 million).

HE Group Berhad, an electrical engineering services provider, made an impressive debut on the ACE Market by opening at RM0.43, 53.6% up from its IPO price of RM0.28. The group saw less ebullient trading as the day progressed and ended at RM0.325 (16.07%) at market close.

The proceeds raised from the IPO, amounting to RM24.33 million, will be used mainly for its working capital requirements (RM15.13 million). It will also allocate RM3.65 million for business expansion, RM3.8 million for listing expenses and RM1.75 million for capital expenditure.

Master Tec Group Berhad, a power cables maker and distributor, made a flat debut on ACE Market by opening at its IPO price of RM0.39 and ended its maiden trading day at RM0.36, about 7.69% down from its IPO price.

A total of RM24.39 million or 39.55% of the proceeds will be allocated for the purchase of new machinery and equipment, and RM16.78 million (27.22%) designated for the construction of two new MV power cable manufacturing plants in Alor Gajah, Melaka. The remaining RM16.29 million (26.42%) is allocated for general working capital, followed by the remaining RM4.2 million (6.81%) for listing expenses.

KJTS Group Berhad made an impressive debut on the ACE Market, opening at RM0.46, risen about 70% from its IPO price of RM0.27. The stock climbed further and ended the maiden trading day at RM0.50, bringing the premium to 85.2%.

KJTS specializes in providing cooling energy, cleaning, and facility management services, primarily to the property industry. The company offers comprehensive services, including energy management, engineering, procurement, construction and commissioning (EPCC), and the installation, retrofitting, or upgrading of cooling systems. They are strategically positioned for Malaysia’s rapidly growing data centre sector.