Bursa Malaysia Bhd has targeted for 39 companies to launch their initial public offerings (IPOs) with RM10 billion IPO market capitalisation in 2023 compared with 35 listings with RM11.5 billion market capitalisation on the exchange last year.
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said this would allow growing small and medium-sized companies to enter the market, especially the ACE Market, and come up with primary offerings to raise capital for business expansion.
“We have seen listings of six companies in the ACE Market and one in the Main Market in the first month of 2023. Given the level of oversubscription, this has attracted interest from other small and medium-sized enterprises, which is the target market for ACE Market,” he said during Bursa Malaysia’s media briefing for the financial year ended Dec 31, 2022 (FY2022) here today.
Abdul Wahid said the targeted companies include those in the electrical and electronics industry and electronics manufacturing service providers.
“I think with the 39 companies that we projected, there are possibilities some of them may come with lower market capitalisation at the point of IPO, but the capital they raise will enable them to grow,” he added.
On Bursa Malaysia’s average daily trading value, chief executive officer Datuk Muhamad Umar Swift said the exchange expects it to be RM2.3 billion to RM2.4 billion in 2023 on the expectation of an improved ringgit, more investments as well as support coming from domestic investors.
He said Bursa Malaysia is targeting RM295 million to RM326 million in profit before tax for this year and to launch its first trading of Bursa Carbon Exchange via an auction slated for March 16.
On the outlook for 2023, Abdul Wahid said Bursa Malaysia’s growth in 2023 is expected to moderate in line with a slower global economy.
“Looking ahead, short-term market volatility is expected to persist in the coming months. Nonetheless, positive and domestic catalysts could boost market sentiment, potentially providing further fundamental support to the domestic market in the medium term,” he said.
Abdul Wahid said the exchange would continue to improvise current offerings while deepening capabilities in venturing into new products and services to enhance market vibrancy.
“Bursa Malaysia will focus on its ongoing Public Listed Companies Transformation Programme to help create a more attractive market and support Malaysia’s economic growth.
“We will also leverage technology and work on innovations to improve customers’ experiences with us and better serve them,” he said.
Abdul Wahid added that the exchange remains committed to further developing the marketplace for the betterment of all stakeholders and making it an attractive investing and listing destination in line with the bourse’s mission of ‘Creating Opportunities, Growing Value’.