KUALA LUMPUR : The Employees Provident Fund (EPF), which manages RM1.25 trillion in assets, has yet to make a notable appearance in any of the 33 initial public offerings (IPOs) launched in 2025, despite a robust pipeline and growing market momentum.
Bursa Malaysia has targeted 60 listings this year, with an estimated total market capitalisation of RM40.2 billion. EPF’s current restraint is particularly striking in light of its active role in 2024, where it took significant positions in several of the year’s largest IPOs.
Last year, the pension fund emerged as a key institutional investor in Johor Plantations Group Bhd, Prolintas Infra Business Trust and 99 Speed Mart Retail Holdings Bhd — collectively accounting for RM20.32 billion or nearly 65% of total IPO market capitalisation in 2024.
Track Record in High-Profile Offerings
EPF’s investment in 99 Speed Mart began with a 5.02% stake acquired on 4 June, later increased to 5.10% as of 1 July. The convenience store chain, which listed in September 2024, was Malaysia’s largest IPO in seven years. Its shares rose 13.9% on debut, closing at RM1.88 compared to the IPO price of RM1.65. As of last Friday, the stock was trading at RM2.20 — a 33.3% increase since listing. The company was also fast-tracked into the FTSE Bursa Malaysia KLCI and adopted a dividend policy to distribute 50% of net profit biannually.
Similarly, Johor Plantations Group Bhd saw EPF taking an initial 8.89% stake during its July 2024 debut, later raised to 10.23%. Shares opened at 83 sen and closed at 90 sen on the first day, and by 4 July 2025, were trading at RM1.20, marking a 44.6% gain. The group has pledged to pay out at least 50% of post-tax and minority interest profits as dividends annually.
In March 2024, EPF acquired 6.18% of Prolintas Infra Business Trust at 95 sen per unit, increasing its stake to 7.87% by July. Although units last traded at 96 sen, the trust’s policy of distributing 90% of distributable income annually makes it a compelling option for income-focused investors.
Cautious Stance Amid Mixed Market Performance
This year’s IPO market has delivered uneven returns. The first seven listings posted gains ranging from 8.33% to 98.86%, led by Oriental Kopi Holdings Bhd. However, the market has since cooled, with several listings underperforming.
Among the more prominent 2025 IPOs, Eco-Shop Marketing Bhd raised RM974 million in what was the country’s largest listing in eight months. Despite a 6% debut gain, its performance has been modest, with shares last trading at RM1.27.
Analysts suggest EPF’s subdued participation may be deliberate. Bank Muamalat’s chief economist, Dr Mohd Afzanizam Abdul Rashid, points to heightened risk aversion amid global volatility and a likely shift towards fixed income to preserve capital and capitalise on rate cuts. He also noted that many of this year’s IPOs are relatively small in scale, limiting their relevance to a portfolio of EPF’s magnitude.
Economist Geoffrey Williams echoes this view, stating that EPF’s decisions are guided by a strategic asset allocation framework that prioritises long-term value over short-term opportunities. He added that by stepping back from smaller IPOs, EPF may be allowing room for other institutional investors, thereby encouraging broader market participation and avoiding accusations of favouritism.
Williams emphasised the importance of independence in EPF’s investment strategy, underscoring the need for decisions to be aligned with long-term goals and prevailing market dynamics.
Focus Shifts to MMC Port’s Potential Blockbuster
The second half of 2025 remains ripe with opportunity, with 27 more listings anticipated before year-end. Chief among them is the highly anticipated listing of MMC Port Holdings Bhd, expected to be Malaysia’s largest IPO in over a decade.
Parent company MMC Corp has lodged a draft prospectus and is expected to divest up to 30% of its port business. The offering is likely to hit the market in late Q3 or early Q4.
Should EPF decide to participate, its involvement would signal a major vote of confidence. Until then, its cautious posture continues to draw close scrutiny from market observers and institutional peers alike.
-NST
