KUALA LUMPUR (Jan 31): Bursa Malaysia Bhd believes it can capture 42 initial public offerings (IPOs) in 2024, according to the stock exchange operator’s chief executive officer Datuk Muhamad Umar Swift, notwithstanding its 2023 target of 39 listings went unmet.

Underpinning this year’s target is the existing application for 24 IPOs, which are already in the pipeline.

Muhamad Umar said that Bursa Malaysia is aiming for a total market capitalisation of RM13 billion for its maiden shares sale in 2024.

“There is an ebb and flow [in the market]. We missed our target [in 2023] because of the transition around money. We worked hard to address that, so we are confident. We set a realistic target,” Umar told reporters after Bursa Malaysia’s financial performance media briefing.

Previously, the bourse operator surpassed its targeted IPO market capitalisation of RM10 billion for FY2023, when it recorded RM13.6 billion on the back of 32 IPOs.

Bursa Malaysia remains optimistic about the local equity market which kicked off the new year on an encouraging tone. Chairman Tan Sri Abdul Wahid Omar observed that in the first 30 days of 2024, the average daily trading value (ADV) grew 55% year-on-year to RM3.2 billion.

“We expect improvement in corporate earnings with an overall positive environment and also the encouragement (from the prime minister) for [GLCs and GLICs] to invest more domestically. We reckon that the outlook for 2024 should be good,” he said.

Furthermore, Umar said there is an ongoing dialogue between various participants within the capital market intermediaries and government authorities to make Malaysia a more attractive listing destination for technology-related industries, oil, healthcare and companies focusing on ESG principles, such as renewable energy.

“The emphasis on these sectors is driven by their potential for growth and innovation, aligning with global market capital as well as economic strength. So, these sectors are seen as pivotal for the country's future economic development, hence the specific focus to make Malaysia an attractive distinct destination for companies in this area,” he added.

The bourse operator is aiming to launch a renewable energy certificate platform and a centralised sustainability intelligence platform in 2024.

On the financial front, Bursa Malaysia reported revenue of RM616.49 million for FY2023, a rise of 2.2% from RM603.25 million in FY2022. It recorded a net profit of RM252.38 million last year, up 11.4% from the previous year’s RM226.57 million. 

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