PETALING JAYA: Analysts remain upbeat on Bursa Malaysia Bhd
’s prospects, given its aim of reframing its initial public offering (IPO) cycle towards quality stocks.
The stock market operator recorded 60 IPOs in 2025 – the highest level in two decades – making it the most active IPO market in South-East Asia by volume.
BIMB Securities is maintaining its “hold” call on the stock, with an unchanged target price of RM9.15.
In spite of its solid IPO numbers for 2025, the research house noted however that total funds raised (from the IPOs) declined to RM5.95bil from RM7.42bil in 2024.
This, the research house said, reflected the absence of large-cap listings such as 99 Speed Mart Retail Holdings Bhd, which had skewed proceeds higher in the previous year.
“IPOs make a small portion of revenues, less than 1%, but it confers a greater base to derive clearance and trading fees on the new listed entities as well as attracting new investors to the market.”
BIMB Securities said Bursa Malaysia collects listing fees at multiple stages, such as initial IPOs, additional share listings and annual fees.
“But the bulk of its revenue in this segment comes from recurring annual listing fees, rather than one-off IPOs or secondary issuances.”
BIMB said these fees are calculated based on a company’s closing market capitalisation at the end of the previous trading year, providing Bursa with a stable and predictable revenue stream.
“While IPO activity fluctuates, annual fees provide a stable recurring revenue base.”
As such, BIMB Securities believes that Bursa Malaysia’s plans of shifting towards “deal size and investability” will bode well for the stock market operator.
“Bursa Malaysia is pivoting its IPO strategy towards deal size and investability rather than headline volumes.
“The exchange is targeting total IPO market capitalisation of RM28bil, with a clear emphasis on Main Market listings valued at RM1bil and above to meet foreign institutional thresholds.
“Sector focus is expected to centre on technology, alongside sustained interest in consumer and industrial services.”
Thus far, BIMB Securities said there has been six IPOs in January 2026, adding that there are few upcoming IPOs that are garnering lots of investors interest, such as Sunway Healthcare, SkyeChip and MTT Shipping & Logistics, to name a few.
It also noted that Bursa Malaysia has taken active steps to increase bumiputra participation in the capital market.
“In February 2026, Bursa Malaysia signed a memorandum of collaboration with Unit Peneraju Agenda Bumiputra (Teraju).
“This partnership aims to identify high-potential bumiputra companies and guide them through IPO readiness programmes to meet listing requirements.
“The most recent example is the recent Xcelerate IPO Synergy event held on Feb 11.”
Bursa Malaysia reported an annual net profit of RM250.16mil for the financial year ended Dec 31, 2025 (FY25), down from RM310.12mil in the previous year, while revenue fell to RM727.73mil from RM784.3mil in FY24.
Revenue from the country’s securities market in FY25 fell to RM308.2mil, compared to RM381.5mil in FY24, as it experienced a 19.8% decline in average daily trade value across on market trades and direct business trades.
Trading revenue in the derivatives market, meanwhile, fell a marginal 0.9% to RM112.8mil due to lower collateral management fees in FY25.
In the Islamic Market segment, operating revenue climbed 31.2% to RM23.5mil in FY25, from RM17.9mil in FY24.
According to Bursa, this was attributed to higher Bursa Suq Al-Sila’ trading revenue of RM20.2mil.
Trading revenue from Bursa Gold Dinar tripled to RM3.3mil in FY25 from RM1mil in the previous year.
The exchange’s data business revenue rose 3.9% to RM81.4mil, contributed by sustained demand and a higher subscription base.
In line with the performance, the board of directors declared a final dividend of 14 sen per share, with ex-date on Feb 16, 2026, and payment date on Feb 27, 2026.
Meanwhile, Bursa Malaysia chief executive officer Datuk Fad’l Mohamed said Malaysia’s capital market is expected to remain resilient in 2026, supported by stable domestic demand, sustained investment activity and continued clear policy from the government and Bank Negara Malaysia.
“While global growth is projected to moderate due to broader macroeconomic shifts, the exchange remains focused on strengthening market vibrancy and ensuring a robust ecosystem across all segments,” he said in a statement.
