Investment & Market Trends

Big Caring Group Bhd, Malaysia’s largest pharmacy chain operator and backed by private equity firm Creador, has filed for an initial public offering (IPO) on the Main Market of Bursa Malaysia. According to its draft prospectus posted on the Securities Commission website on Thursday, the group plans to use IPO proceeds to cut debt from recent acquisitions and to finance a new automated distribution centre. The company operates the BIG Pharmacy and CARiNG Pharmacy chains and is led by husband-and-wife founders Lee Meng Chuan (group managing director and CEO) and Lim Sin Yin (executive director). Both are trained pharmacists who opened their first store in Damansara Uptown in 2006. Since then, the group has grown rapidly through organic expansion and strategic acquisitions, including the mergers with RedCap Pharmacy (2018), My Pharmacy (2019), and the acquisition of CARiNG Pharmacy from 7-Eleven Malaysia (2023). Tackling a RM1.3 Billion Debt As of 31 January 2026, Big Caring Group’s borrowings stood at RM1.3 billion, with an average interest cost of 5.2% per annum (as of 30 June 2025). The majority of this debt is a RM831.3 million term loan, used primarily for the RM888.33 million acquisition of Caring Pharmacy Group and the RM249.4 million purchase of an 89.3% stake in Medispec (M) Sdn Bhd, a pharmaceutical distributor. The company also invested RM32.8 million for a 57.1% stake in physiotherapy chain Your Physio Sdn Bhd. The IPO proceeds are expected to reduce revolving credit and term loan facilities, generate interest savings, and strengthen the company’s balance sheet for future growth. Expansion Plans Big Caring Group currently operates 626 outlets across several brands, including BIG Pharmacy, CARiNG Pharmacy, Georgetown Pharmacy, Wellings, and Ting Pharmacy. It aims to open 40–50 new outlets annually over the next three to five years. A new automated distribution centre will support this growth, replacing the existing Bukit Raja facility, which is currently running at 61% capacity and is projected to reach full capacity within five years. The new facility will feature advanced automation for inbound handling and pallet storage. IPO Structure and Shareholding The IPO will include an institutional offering of 1.614 billion shares and a retail offering of 267.64 million shares, with pricing to be announced later. Up to 25.5% of the enlarged share base will be offered, including 17.5% from selling shareholders. Creador, via its special purpose vehicle Iris Pallida Sdn Bhd (IPSB), will reduce its stake from 33.7% to 19.4%, while the founders’ indirect stake will fall from 42.9% to 34.4%. Their direct holdings will also be slightly diluted. Financial Performance For the financial year ended 30 June 2025, Big Caring Group posted a net profit of RM143.02 million on revenue of RM3.41 billion, with same-store sales growth of 9.6%, up from 7.3% in FY2024. The IPO is being managed by Maybank Investment Bank and RHB Investment Bank as joint principal advisers, joint global coordinators, and joint bookrunners. AmInvestment Bank and UBS are also involved as co-managers and underwriters.

Shareholders of UEM Edgenta Bhd have approved the proposed selective capital reduction and repayment (SCR) exercise, clearing the way for UEM Group to take the company private and increase its ownership to 100%. In a statement, UEM Group said the SCR will become effective upon the lodgement of the sealed order from the High Court of Malaya with the Companies Commission of Malaysia. Following this, UEM Edgenta is expected to be delisted from the Main Market of Bursa Malaysia in early July 2026. Under the exercise, UEM Group, which currently holds 69.14% of UEM Edgenta, will acquire the remaining 30.86% stake, equivalent to about 257 million shares, at RM1.10 per share. The transaction will involve a total cash repayment of approximately RM282 million. UEM Group said that once it becomes the sole shareholder, it plans to work closely with UEM Edgenta to refine strategic direction, pursue key initiatives and manage the group’s diversified businesses more effectively. The privatisation is also expected to provide greater flexibility for long-term planning and operational decision-making. At the extraordinary general meeting, disinterested shareholders holding 97.09% of the total value of disinterested shares voted in favour of the resolution. Votes against the proposal stood at 1.33%, below the 10% threshold required to block the exercise, allowing the resolution to pass. UEM Group, a wholly owned subsidiary of Khazanah Nasional Bhd, had first informed the board of UEM Edgenta in November last year of its intention to privatise the company via the SCR mechanism.

The proposed privatisation of DKSH Holdings (M) Bhd (DKSH Malaysia) through a selective capital reduction (SCR) has been aborted after shareholders voted against the plan at an extraordinary general meeting (EGM). In December 2025, DKSH Holding Ltd, via its wholly owned subsidiary DKSH Resources (M) Sdn Bhd, had offered to acquire the remaining 25.7% stake it does not already own, with the intention of delisting DKSH Malaysia from Bursa Malaysia. In a filing with Bursa Malaysia, the company said the special resolution required to proceed with the SCR did not receive sufficient shareholder support at the EGM. Poll results showed that 66.23% of shareholders by number and 87.47% by value voted against the resolution. Additionally, 38.8% of votes attached to shares held by disinterested shareholders were cast against the proposal, exceeding the threshold required to block the resolution. As a result, the special resolution was not passed and the proposed privatisation will not proceed.

Malaysian insurtech PolicyStreet has raised US$21 million (RM85 million) in the first close of its Series C funding round, following a profitable FY2025 in which the company reported over US$1 million in profit. The first close was led by Cool Japan Fund, alongside existing investors Altara Ventures and Gobi Partners, among others. With this round, PolicyStreet is now backed by two sovereign wealth funds, having previously secured funding from Khazanah in a US$15.3 million Series B round in 2023. The fresh capital will support PolicyStreet’s next growth phase, including regional expansion, strengthening technology infrastructure, and deepening partnerships across Asia. Yen Ming Lee, Co-Founder and CEO of PolicyStreet, said:“With Cool Japan Fund joining this round, being backed by two sovereign wealth funds validates our business model and the long-term potential of insurtech in Asia. This milestone reflects our progress in building a sustainable, profitable business, and underscores the growing role of embedded insurance in the region’s digital economy. As we scale, our focus remains on strengthening technology and expanding partnerships to drive long-term growth.” Since its previous fundraising in 2023, PolicyStreet has grown its customer base from 5 million to over 10 million, while its total sum insured rose from US$6 billion to more than US$10 billion. The company has also expanded regionally through partnerships across sectors such as gig work, mobility, travel, logistics, and telecommunications. PolicyStreet continues to engage with additional investors as its Series C round progresses.

KKR & Co. is planning a tender offer to take Taiyo Holdings Co. private in a deal that values the Japanese firm at approximately ¥500 billion (US$3.2 billion or RM12.93 billion). Under the proposed transaction, KKR intends to pay ¥4,750 (RM120.48) per share, according to a statement released late Tuesday. This price represents a 117% premium over the six-month average unaffected closing price as of May 27, prior to media reports about a potential bidding process. Following the announcement, Taiyo shares fell 5.7% to ¥4,700 in Tokyo on Wednesday, marking the lowest level since December 22. The tender offer has received the support of Taiyo’s board of directors, as well as its largest shareholder DIC Corp, asset manager Kowa Co, and funds managed by Hong Kong-based Oasis Management Co., which together hold roughly 42.2% of the company’s outstanding shares. The founding family has indicated plans to reinvest in the investment vehicle that will own Taiyo post-transaction, maintaining a stake in the company. According to sources familiar with the matter, discussions between KKR and Taiyo began in February, with the parties finalizing the take-private offer over the past several months. Initial expectations had suggested a potential offer price below Taiyo’s then level of ¥6,000 per share, highlighting the premium now being proposed in the deal. The move reflects KKR’s continued focus on strategic acquisitions in Asia, particularly in companies with strong fundamentals and growth potential that can benefit from private ownership and long-term operational support.

BYD Co’s exports and overseas sales rose 65% in March, driven by surging oil prices from the Iran conflict, which boosted demand for electric vehicles (EVs). However, the automaker continues to face challenges in the domestic Chinese market. Sales of BYD Co’s vehicles outside China hit 120,083 units in March, the highest in three months as high energy costs support demand for electric vehicles. Sales outside China reached 120,083 units in March, the highest in three months. Despite the overseas gains, total deliveries fell about 20%, marking a seventh consecutive month of decline. Still, BYD reclaimed its lead over Geely Automobile Holdings Ltd, which had outsold BYD in January and February. The data highlights the hurdles for BYD, which is relying on international expansion to offset slowing domestic demand and profits. Efforts to stimulate China sales through advanced batteries and ultra-fast charging have yet to fully sway consumers, especially after EV subsidies were reduced. March showrooms across Asia suggested a temporary lift for BYD abroad as rising fuel prices renewed interest in EVs, though global economic uncertainty could limit long-term demand. Future export growth will depend on ramping up new plants in Hungary, Thailand, and Brazil, and increasing local production, according to Chris Liu, senior analyst at Omdia. BYD expects exports to reach 1.5 million vehicles in 2026, up from a previous target of 1.3 million. Geely plans to raise its export target to 750,000 units. In China, volatile gasoline prices may continue to favor EVs, potentially supporting BYD’s domestic market share. The March figures provide the first clear view of demand after the extended Lunar New Year holiday. Last week, BYD reported a sharper-than-expected drop in fourth-quarter earnings, capping its first annual profit decline in four years.

CIMB is collaborating with the Securities Commission Malaysia (SC) and Bursa Malaysia on a FIKRALab pilot to develop a new instrument for the country’s Islamic capital markets, Bernama reported. The pilot forms part of the SC’s Capital Market Masterplan 2026-2030, aimed at broadening the investment universe for Shariah-compliant funds and providing more ways for these funds to tap into the region’s growing Islamic banking sector. FIKRALab, launched by the SC as a co-creation and applied research platform, focuses on developing new Islamic capital market products and unlocking Shariah-derived income within mixed-activity groups. The initiative aligns with CIMB’s Forward30 strategy, which prioritizes Islamic finance as a key growth area. Over half of CIMB’s financing book in Malaysia is already Shariah-compliant, while CIMB Niaga in Indonesia is in the process of converting its Islamic banking unit into a full-fledged Islamic bank. CIMB Group CEO Novan Amirudin said the pilot will allow the bank to introduce new Shariah-compliant structures for investors with Islamic mandates, supporting Malaysia’s efforts to strengthen innovation, resilience, and competitiveness in the Islamic capital market.

Tenaga Nasional Bhd (TNB) is seeking to raise up to RM10 billion through a sukuk issuance to support its operations, investments and sustainability initiatives. The utility group has lodged an Islamic medium-term note programme, based on sukuk wakalah, with the Securities Commission Malaysia. The programme allows TNB and its subsidiaries to issue sukuk from time to time, with varying sizes and tenures, according to a Bursa Malaysia filing on Wednesday. TNB said the programme provides flexibility to time fundraising activities and structure issuances with different nominal values and tenures for optimal asset-liability management. It also enables the group to tap into a broader pool of investors in the local capital market. Under the programme, TNB may issue conventional sukuk as well as sustainability and sustainability-linked sukuk, in line with its goal of achieving net-zero emissions by 2050. The programme will have a tenure of up to 50 years from the first issuance date, while individual sukuk offerings may range from one to 50 years. The first issuance is expected within 90 business days. CIMB Investment Bank and Maybank Investment Bank have been appointed as joint principal advisers, joint lead arrangers and joint lead managers. CIMB Islamic Bank and Maybank Islamic will serve as joint Shariah advisers. TNB shares rose 18 sen, or 1.29%, to close at RM14.08 on Wednesday, giving the group a market capitalisation of RM82.07 billion. The stock has gained 32 sen over the past year.

Shares of Pop Mart International Group Ltd are in a relentless selloff, with little sign of stabilization as investor skepticism grows over the toymaker’s reliance on its Labubu dolls. The stock has tumbled more than 30% over five sessions through Tuesday, extending a nearly 60% drop from its August record high and wiping out roughly US$33 billion (RM132.81 billion) in market value. The decline followed the company’s earnings report, which highlighted an increasing dependence on its snaggle-toothed Labubu figures. Pop Mart’s results prompted widespread bearish sentiment, with analysts cutting price targets, short interest rising, and the stock continuing to slide despite multiple buybacks. “We don’t think the market has fully priced in a prolonged downturn with much lower margins,” said Sammi Xu, consumer analyst at Deutsche Bank AG, who downgraded the stock to sell. She cited weakening domestic and international sales, high inventory, and repeated earnings revisions as key pressures. Labubu dolls had become a global phenomenon last year, driving Pop Mart shares up roughly 300% from early 2025 to an all-time high in August. But concerns about fading Labubu demand have weighed on the stock, and efforts to diversify intellectual property have yet to produce meaningful growth. The Labubu-led Monsters series accounted for about 40% of revenue last year, up from 23% in 2024, while other figures like Crybaby and Molly underperformed expectations. Inventory turnover has also slowed, with days on hand rising 21% year-on-year to 123 days by end-2025, reflecting longer shipping times, higher overseas sales, and an expanded store network. Even with cheaper valuations and share buybacks, investor confidence remains low. Pop Mart has repurchased roughly HK$1.3 billion (US$166 million/RM670 million) of shares since a record 23% daily drop on March 25. The stock now trades at a record low of 10.3 times forward earnings, compared with its three-year average of 24 times. “The current share price isn’t expensive, but the story behind Pop Mart—whether it’s Labubu or the next global hit—feels uncertain,” said Angus Lee, fund manager at Sparx Group Co., who exited his positions after the earnings announcement. Pop Mart is accelerating the launch of new characters such as Skullpanda and Twinkle Twinkle, unveiling crossover collections and pursuing collaborations, including with Sanrio Co., the FIFA World Cup, and a planned animated film with Sony Pictures Entertainment Inc. Shares fell as much as 2.3% in early Thursday trading after a 1.2% gain on Wednesday. Short sellers have increased their positions, borrowing and selling 123 million shares—up 16% since the earnings release—while options traders pushed put volume to a record high. “The market underestimates the challenges ahead,” said Melinda Hu, consumer analyst at Bernstein. “Slower growth, margin normalization, or IP fatigue could trigger further valuation drops and downward revisions to forecasts.”

Pharmaniaga Bhd has won a RM281.7 million government contract to supply human insulin to public hospitals over three years, making it Malaysia’s first local producer of the drug. The insulin will be manufactured at Pharmaniaga’s Puchong facility under its unit, Pharmaniaga Lifescience Sdn Bhd, according to the government procurement portal. The deal positions Pharmaniaga as likely the largest supplier of human insulin to government hospitals, stepping in after a shortage caused by production issues at Biocon and Novo Nordisk’s exit from the market. The Puchong plant can produce up to 30 million doses annually, and sources estimate Pharmaniaga will supply roughly 50–60% of the government’s insulin needs under this contract. Pharmaniaga recently exited PN17 status on March 17, following a red-flag in 2023 after a RM552.3 million Covid-19 vaccine inventory impairment. Separately, Duopharma Biotech Bhd may secure a new three-year contract to supply human insulin under a dual-supplier arrangement with Pharmaniaga, with its current interim extension expiring on May 15. Human insulin is expected to contribute 9–11% of Duopharma’s revenue in 2026.