IPO market to rally on Bursa’s new platform

There are fewer companies listed on Bursa in these 2 years due to stricter requirements


The initial public offering (IPO) market is expected to recover next year and the focus is expected to be on the Leading Entrepreneur Accelerator Platform (LEAP) Market, said KAF Investment Bank Bhd CEO Rohaizad Ismail (picture).

Rohaizad said the IPO will rebound due to the capital fundraising from LEAP Market.

“The market is shifting towards the LEAP Market and we can even see a few SMEs (small and medium enterprises) currently testing the market.”

“Hopefully, we will have the liquidity from that and more companies can tap the capital market by next year,” Rohaizad told reporters at a press conference in Kuala Lumpur last week.

Early this year, KAF Investment Bank has listed two companies on Bursa Malaysia and it is not planning to list more companies by the end of the year.

As such, Rohaizad said the capital market advisory company may have a few companies to be listed in 2018.

He further said there are fewer companies listed on Bursa Malaysia’s in these two years due to stricter requirements.

“With the LEAP Market, we will be able to see more companies which are not prepared for the Main Market to be listed on it,” Rohaizad said.

Bursa Malaysia CEO Datuk Seri Tajuddin Atan had previously said that the LEAP Market is currently being prepped before anyone can pass any judgment on its effectiveness.

“There are a lot of demand in the SME market. We believe easily around 19,000 SMEs are looking to raise capital. Give it six to 18 months and observe first.

“After that, we will look into the areas that need to be improved — the supply and demand chains, and how to further enhance the SME market,” Tajuddin said.

Since its inception, the LEAP Market has already attracted 11 SMEs that have engaged with authorised advisors by the exchange to handle all the due diligence ahead of their listings.

Among the companies are Red Ideas Holdings Sdn Bhd, Polymer Link Sdn Bhd, Trustgate Bhd and East West One Group Sdn Bhd.

Tajuddin said only sophisticated investors — high net-worth entities or individuals with total net assets above RM10 million, or RM3 million respectively — are allowed to invest in companies listed on the LEAP Market.