KUALA LUMPUR: Seven out of nine initial public offerings (IPOs) closed at a premium in the first quarter of 2024 (1Q24).

Industrial products and services sector listings recorded the best performance among the four sectors, with an average price increase of 84.7 per cent from its list price, according to IPO Performance Report prepared by Bursa Digital Research.

The sole business trust listing was up 2.1 per cent, while the transportation and logistics sector (represented by AGX Group Bhd) saw its price contract by 8.6 per cent from its list price, and the healthcare sector listing (Alpha IVF Group Bhd) contracted by 1.6 per cent.

"As of March 29, 2024, seven stocks closed above their IPO prices and two stocks closed below their list prices," the report said.

"Power cable manufacturer Master Tec Group Bhd closed 156.4 per cent above its list price to become the best performing IPO in 1Q24," it noted.

Nine companies listed in 1Q24 raised RM1.31 billion via new public issue and offer for sale.

They had a combined market capitalisation of RM4.0 billion.

New listings in the 1Q24 comprise one business trust on the Main Market and eight companies on the ACE Market.

Industrial products and services sector led in terms of number of listings, with six out of the nine companies listings on the ACE market.

Collectively, these six companies raised RM350.6 million with IPO market capitalisation of RM1.25 billion.

In terms of net fund flow, the report noted that local institutions and foreign investors were net buyers of IPOs in the first quarter of 2024, with local institutions purchasing RM45.7 million.

Foreign investors were also net buyers,  buying RM58.9 million of newly listed shares in the same period.

They mainly added KJTS Group Bhd (local institution +RM39.1 million; foreign +RM40.1 million) and HE Group Bhd (local institutions +RM17.7 million; foreign +RM 7.1 million) to their portfolios.

At the end of the quarter, KJTS commanded 37 per cent premium from its price while power distribution system provider HE Group's price rose 57.5 per cent for the same period.

https://www.nst.com.my/business/corporate/2024/04/1037078/7-out-9-ipos-year-closed-premium-1q2024