KUALA LUMPUR (April 26): Bursa Malaysia’s initial public offering (IPO) momentum is expected to continue for the remainder of the year, given the pipeline of submissions, particularly for the ACE Market.

Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift said several IPO applications were approved and pending listing.

“Bursa's IPO pipeline across all three markets remains healthy,” he told Bernama.

Ten listings were recorded as of March 31, 2023, versus five IPOs during the same period last year. 

A total amount of approximately RM992.5 million was raised from January to March this year, bringing a market capitalisation of RM3.5 billion upon listing.

Among the 10 companies listed in the first quarter of 2023 (1Q2023), two were listed on the Main Market, one on the LEAP Market, and the remaining seven companies on the ACE Market.

In 1Q2022, two companies were listed on the Main Market, two on the ACE Market, and one on the LEAP Market.

“The Covid-19 pandemic had a significant impact on numerous companies and industries throughout the country and region.

“However, as the economy has reopened and moved towards normalisation, many companies have recovered, and some have sought listing. We anticipate this trend to continue throughout 2023,’’ he noted.

He said Bursa’s regulatory framework and ecosystem for the local capital market continue to offer a vibrant and supportive environment for issuers to fulfil companies’ capital-raising needs.

“The exchange’s ACE Market one-stop centre has made accessing the public equity capital market more efficient, particularly for small and medium enterprises, and growing companies with significant potential.

“Despite this, based on our engagements, we have found that one of the main challenges that companies face when seeking to go public is compliance with licensing or regulatory requirements prior to submitting their listing application,’’ Muhamad Umar noted.

To address this, Bursa has been working on raising awareness among growing companies to plan ahead for listing preparations, and ensure that they are adequately equipped for going public.

This will also assure that the corporate governance factor is instilled prior to the process.

For 2023, a total of 39 IPOs are expected en route to listing on Bursa.

https://www.theedgemarkets.com/node/664615