PETALING JAYA: The initial public offering (IPO) market may see a slowdown this year in Malaysia given the cautious sentiment on the ground now stemming from ongoing geopolitical concerns.
Most listings have been on the ACE Market in recent times, which analysts say could see a slowdown this year but bigger capitalised companies going public may still be able to list with reasonable realistic valuations and sufficient institutional demand.
This is seen for industries that are able to hold up well in the current economic environment and is in line with global trends.
The FBM KLCI which has held up well so far in spite of the ongoing Middle East uncertainties may also help sustain demand for new listings and risk appetites.
In the first quarter of 2026, two companies out of the 16 that have been listed so far are on the Main Market and they are Hock Soon Capital Bhd and Sunway Healthcare Holdings Bhd.
Of the remainder, 10 have been listed on the ACE Market while another four on the LEAP Market.
According to data compiled by Bursa Malaysia, most of the companies that have listed in the first quarter of this year have seen positive returns on the first day of its listing compared to its IPO reference price, with the exception of SBS Nexus Bhd, Guan Huat Seng Holdings Bhd, One Gasmaster Holdings Bhd, Hock Soon Capital Bhd, Teamstar Bhd and OGX Group Bhd.
Bursa Malaysia is targeting RM28bil in total IPO market capitalisation this year, which is an increase from the RM27.4bil that was achieved in 2025.
Last year’s IPOs comprised 11 listings on the Main Market, 44 on the ACE Market and five on the LEAP Market.
Asset management firm Tradeview Capital’s founder and chief executive officer Ng Zhu Hann said he believes Bursa Malaysia will be able to meet this target in market capitalisation terms.
“Though I would think the number of listings could likely be less compared to last year, which was at its strongest levels in recent history.
“There are a few more Main Market IPOs in the pipeline,” Ng told StarBiz.
Empire Premium Food Bhd, the owner operator of the Empire Sushi, will go public on the Main Market on April 17, while 5E Resources Holdings Bhd, a waste management company, is set to list on the ACE Market on April 15.
MTT Shipping and Logistics Bhd, a container shipping services firm, is set to list on the Main Market on April 21; travel tours company Golden Destinations Group Bhd will make its debut on the ACE Market on April 16 and AMS Advanced Material Bhd will go public on the ACE Market on April 23.
IOI Properties
Real Estate Investment Trust is targeting its listing in June 2026, according to a report earlier this year in January.
“To meet Bursa Malaysia’s market capitalisation target is not a problem – but there is a concern that the newly listed companies can sustain their price after listing,” said Ng.
He noted that there are concerns on market sentiment, as many are not subscribing to ACE Market ones, but opting to stay on the sidelines.
“As such, there may be a weakening of sentiment here. Many with extra cash would rather hold it and keep it, given the risk off sentiment now,” Ng added.
BIMB Securities’ director of research Mohd Redza Abdul Rahman noted that while the escalating conflict in the Middle East typically triggers a “risk-off” sentiment globally, he nevertheless said that Malaysia may benefit from any decoupling effect.
“Investors are increasingly rotating capital into Asean markets as they seek policy clarity and economic stability away from the volatility of developed markets.
“I would say in such an environment that investors here aren’t necessarily fleeing the market, but they are just becoming more selective,” said Mohd Redza.
Mohd Redza believes that while the pipeline for IPOs in Malaysia remains structurally sound, he however said that the country is entering a period of intense valuation friction.
“Companies will increasingly weigh their ‘need for capital’ against the risk of “leaving too much on the table,” he added.
Mohd Redza said in such an environment, the listed issuers that could go public are broadly categorised into two types - the “necessity” issuers which are companies with high debt; or those needing immediate capital for expansion, such as data centres or infrastructure players.
“They will proceed regardless of valuation dips. If not, they will find other alternatives to source for funds to reduce or meet their capital obligation,” Mohd Redza said.
In the other camp are the opportunistic issuers, namely consumer-facing or early-stage firms with healthy cash flows that may choose to defer for the right valuation.
These are companies that would rather wait for clearer skies than risk a lukewarm debut that could permanently dampen their stock’s long-term perception, said Mohd Redza.
“Therefore, the timing of these listings is becoming fluid. There could be a “hiccup” in the listing calendar in the near term as companies pause to recalibrate their financial needs.
“For those who have an immediate need to de-leverage, waiting for a ‘perfect’ IPO window is a luxury they cannot afford.
“For these firms, they might turn to private credit or bridge financing to stay afloat while they wait for the IPO window to reopen, which will then open up opportunities for specific investors such as private equity funds or alternative asset managers,” Mohd Redza added.
He noted that there is not a lack of quality issuers locally in this respect, but rather, agreement on valuations moving forward.
“As soon as the geopolitical dust settles and a “new normal” price is established, the floodgates will likely open again.
“For these companies, it is better to defer their IPOs than being affected by a low valuation and a low stock price,” Mohd Redza said.
