KUALA LUMPUR: Bursa Malaysia Bhd (KL:BURSA) disclosed today that several companies have opted to delay their planned initial public offerings (IPOs) amidst ongoing market instability spurred by recent shifts in US trade policies.
“We understand that some entities are currently adjusting their timelines,” remarked Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar during a press briefing. He expressed confidence, however, that these companies intend to proceed with their IPOs once market conditions stabilize and uncertainties surrounding external factors diminish.
Tan Sri Abdul Wahid Omar made these statements at the Bursa Malaysia-ECKL-CIMB Roundtable themed “Global Headwinds vs Domestic Resilience: Refreshed Outlook 2025,” underscoring the current challenges faced by Malaysian businesses amidst global economic uncertainties.
Earlier today, Bloomberg reported that OCI Holdings Co of South Korea has temporarily halted preparations for the IPO of its Malaysian polysilicon unit due to volatile global stock markets. While OCI has not made a final decision on the matter, the move highlights the cautious approach adopted by firms in response to unpredictable market conditions.
Adding to the cautious sentiment, Cuckoo International (MAL) Bhd recently announced a two-month postponement of its IPO, citing market uncertainties. The company has initiated investor subscriptions and offered refunds to those opting out of the IPO amid prevailing market anxieties.
Despite these setbacks, Bursa Malaysia remains steadfast in its commitment to host 60 IPOs this year, collectively targeting a market capitalisation of RM40.2 billion. Tan Sri Abdul Wahid Omar reiterated this goal, emphasizing the exchange’s resilience and adaptability in navigating the current economic landscape.
The global financial markets, including Malaysia’s, have been tumultuous, influenced by the US government’s fluctuating tariff policies and lingering uncertainties. These developments have contributed to heightened volatility, prompting both investors and businesses to navigate an increasingly erratic policy environment.
Notable upcoming IPOs listed by Bursa Malaysia include MSB Global Group Bhd on April 15, WTEC Group Bhd on April 29, Reach Ten Holdings Bhd on May 2, West River Bhd on May 5, and Fibromat (M) Bhd on May 8. These listings are pivotal in maintaining market momentum despite prevailing challenges.
Last year, Bursa Malaysia witnessed a significant uptick in IPO activity, with 55 new listings marking a 72% surge from the previous year. The highlight of 2024 was the IPO of 99 Speed Mart Retail Holdings Bhd (KL:99SMART), the largest retail offering in ASEAN since 2020 and the largest in Malaysia in eight years.
As Malaysia’s financial markets brace for continued volatility, Bursa Malaysia remains resolute in its mission to foster economic growth and provide robust investment opportunities amidst a complex global landscape.
