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Bank Negara Malaysia’s recent move to raise the OPR to 3% is justified by the strengthening of domestic growth. At this level, the OPR is now back to pre-crisis levels and is more aligned with the stronger state of the economy. According to BNM, the country’s economy will continue to expand this year with unemployment rate coming down closer to pre-crisis levels which eventually supports household spending power. Large projects in the country is also progressing well and we are having more inbound tourists which supports local businesses.

The promising domestic and economy growth coupled with positive achievements from IPO results in the first quarter of the year has brought forth a strong momentum for companies to list in the market. Since entering the second quarter of the year, we are seeing more IPOs coming in and there are four IPO listings in May alone, two IPOs on ACE Market i.e. Autocount Dotcom Bhd and Cloudpoint Technology Bhd; and two IPOs on Main Market i.e. DXN Holdings Bhd, and Radium Development Bhd.

Autocount Dotcom Bhd made its debut on the ACE Market with impressive opening price of RM1.09 and finished at RM0.75 on its first trading day against its listing price of RM0.33, a substantial gain of 127.27% or RM0.42 jump over its IPO price.

Autocount is a developer and distributor of financial management software that includes accounting, POS and payroll. Based on its traction, Autocount has sold 70,000 software licenses for use of about 210,000 businesses and companies across Malaysia and Singapore.

On the contrary, DXN Holdings Bhd has become the first listed company this year to close lower than its IPO price. The stock also opened below its IPO price at RM0.69 and settled at RM0.665 on its first trading day against its listing price of RM0.70, a 5.7% dropped from initial IPO price.

DXN is involved in sales of health-oriented and wellness consumer products. In its future plan, the organisation seeks to expand and shall move into new markets in Latin America and Africa regions such as Brazil, Argentina, Ghana, Algeria and Egypt. DXN will foray into the China market through web marketing, due to difficulty in procuring a licence in the market in the next 3-5 years.

Cloudpoint Technology Bhd made its debut recently on the ACE Market and opened strongly at RM0.75 and finished at RM0.515 on its first trading day against its listing price of RM0.38, about 35.5% higher.

Cloudpoint delivers comprehensive solutions encompassing design, procurement, implementation, support and after-sales maintenance. Its clientele base includes large enterprises such as financial institutions, telecommunications companies and technology service providers in Malaysia.

Radium Development Bhd, on the contrary, made a weak debut just a few days ago on the Main Market. Underscoring softer investor interest in property stocks, Radium’s stock slumped to open at RM0.35 and finished at RM0.38 on its first trading day against its listing price of RM0.50, 24% lower than its IPO price.

Radium focuses on the development of high-rise residential properties such as condominiums, serviced apartments, suite apartments, and Soho units within Kuala Lumpur.