As at Nov 15, there were 46 IPOs, surpassing Bursa Malaysia’s target of 42 for the entire year. — MUHAMAD SHAHRIL ROSLI/The Star
The past year has been really promising for the Malaysian stock market in terms of the number of initial public offerings (IPOs).
As at Nov 15, there were 46 IPOs, surpassing Bursa Malaysia’s target of 42 for the entire year, a level not seen since the 40 IPOs of 2006 and making the country’s stock market the leading one in South-East Asia.
According to Deloitte, up until Nov 15, these 46 IPOs had raised a total of RM6.7bil.
In contrast, RM3.73bil was raised from 32 IPOs in 2023 and RM3.5bil was raised from 35 IPOs in 2022.
Domestic political stability, a clear-cut reform agenda and stable economic growth also helped boost the stock market’s benchmark index, the KLCI, which in the period from January to Nov 15, gained 9.59% to over 1600 points.
This in turn supported the bullish IPO sentiments that saw the listing of 99 Speed Mart Retail Holdings Bhd, the largest listing in the domestic stock market in seven years and the second-largest in the region in 2024.
Likewise, the ringgit, which had flirted with a historic low against the US dollar not seen since the Asian financial crisis of 1997 to 1998, strengthened to 4.12 by the end of September.
And while it has since weakened due to expectations that the United States Federal Reserve will not cut interest rates as much as expected, analysts believe the ringgit will not be as volatile given the return of investor confidence in Malaysia’s growth trajectory.
In the corporate world, Public Bank Bhd, the third-largest bank in Malaysia by assets, held a media conference in October for the first time in 15 years to announce that the heirs of the late Tan Sri Teh Hong Piow, who died in December 2022, would pare down their stake in the bank to 10% over the next five years from the 23.4% that they hold to eligible shareholders.
The government continued its fiscal reforms through the rationalisation in June of the diesel subsidy for Peninsular Malaysia, with a 56% increase in price per litre. — MUHAMAD SHAHRIL ROSLI/The Star
It was also announced that the heirs would divest their 44.15% stake in insurer LPI Capital Bhd in a deal worth RM1.72bil to the bank.
Sarawak also figured in corporate headlines over 2024 as the state government finally became Affin Bank Bhd’s largest shareholder with a 31.25% stake from 4.81% after finalising a deal that had been long delayed.
The year also witnessed the ongoing discussions between Petroliam Nasional Bhd and Petroleum Sarawak Bhd over control of Sarawak’s natural gas distribution that has increasingly become a tussle over the state’s natural gas resources, vital to both parties.
Finally, the government continued its fiscal reforms through the rationalisation in June of the diesel subsidy for Peninsular Malaysia, with a 56% increase in price per litre.
The diesel subsidy cost RM14.3bil in 2023, a 10-fold increase from RM1.4bil in 2019.
The government estimated savings of RM4bil annually from this move, to be used as targeted aid for low-income groups.
In addition, eligible logistics companies, public transport and fisherfolk will continue to have subsidised diesel.
