M & A Value Partners Asset Management Malaysia Sdn Bhd has launched the M & A Value Partners IPO Equity Fund last week. The fund is the Malaysia’s first wholesale IPO-focused fund, targeting an annual return of 13%. It aims to provide capital appreciation by investing in Malaysian companies' equities and equity-related securities at pre-IPO, IPO, and post-IPO stages.

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M & A Value Partners IPO Equity Fund Launching Event

As the first IPO wholesale fund in the market, it targets securities with potential catalysts for re-rating over the short to medium term through various corporate actions, catering to sophisticated investors with medium-to-high risk tolerance seeking capital gains.

Sean Yap, CEO of M&A Value Partners Asset Management

Sean Yap, the chief executive officer of M&A Value Partners Asset Management explained that the 13% targeted return is based on the simple average of all Bursa Malaysia IPOs total returns since 2020.

“The fund provides indirect access to IPO pipeline deals, capitalising on the high liquidity flows into primary deals on Bursa Malaysia,” Yap said.

“IPOs have outperformed by a wide margin of more than 66% versus the benchmark FBMKLCI since 2020. And as the high liquidity flows go, our research shows that in the top 10 IPOs since 2020, the retail portion has on average been oversubscribed by a massive 42 times. Our fund now gives you the opportunity to tap into the IPO market which you wouldn’t normally get to be part of,” he added.

Yap stated that the fund aims to give investors indirect access to primary offerings on Bursa Malaysia.

“Typically when we initiate a position, we would require at least a 50% upside from our investment cost. If we see longer-term upside potential, we will hold it for the longer term. This is an open ended wholesale fund, investors can invest at any time and also withdraw at any time without a lock in period.

“Most IPOs are spread out in terms of their launches, we do not need any additional capital whenever there is an IPO in the market, and furthermore we limit our exposure to a single IPO at most, to 20% of the total fund size, as part of our risk management strategy.”

On other strategic aspects of the fund, Yap explained that the portfolio will be “concentrated” and will comprise not more than 20 securities.

“The fund will also invest in securities which are undervalued and mispriced due to market inefficiencies. We will adopt a careful discretionary value investing approach in selecting high growth securities and uncovering opportunities in this segment,” Yap added.

Register your interest now

M & A Value Partners IPO Equity Fund is the Malaysia’s first wholesale IPO-focused fund, targeting an annual return of 13%, catering to sophisticated investors with medium-to-high risk tolerance seeking capital gains. Unlike the conventional method of subscribing to IPOs, this fund provides investors with indirect access to primary offerings on Bursa Malaysia, opportunities they typically wouldn't have access to. Additionally, the fund is managed by a fund management team, which limits its exposure to any single IPO to a maximum of 20% of the total fund size as part of its risk management strategy.

Enquire Now: https://klse.i3investor.com/sams/i3/mnavp​

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