2024 was a milestone year for Bursa Malaysia as it made a record-breaking achievement with a total of 55 initial public offerings (IPOs) – the highest in nearly two decades. These new listings collectively raised RM7.42 billion, a 107% surge from the previous year, and added RM31.37 billion in market capitalisation to the Malaysian stock market.
This remarkable growth highlights the strong investor confidence and the booming IPO landscape on Bursa Malaysia.
Out of the 55 IPOs in 2024, 11 companies debuted on the Main Market, which is meant for established companies that have met certain standards in terms of quality, size and operations. Meanwhile the ACE Market, which saw 40 listings, is a sponsor-driven market designed for companies with good growth prospects, and the LEAP Market, an adviser-driven market that provides emerging companies with greater fund-raising access, welcomed 4 new entrants.
But here’s the million-ringgit question: If you had invested RM1,000 in every Main Market IPO, how much would you have today?
To analyse the returns, we’ll assume an investment of RM1,000 in each of the 11 Main Market IPOs at their listing price, bringing the total capital outlay to RM11,000, with all shares held until today.
Investing In Every IPO On The Main Market In 2024
In 2024, Bursa Malaysia’s IPO scene saw its fair share of winners and losers. The following table summarizes the returns of the 11 Main Market IPOs:
| Company | Date of Listing | IPO Price | Price as of 7 February 2025 | Return (%) |
| Keyfield International Bhd | 22 April 2024 | 0.90 | 2.35 | 161.11 |
| Johor Plantations Group Bhd | 09 July 2024 | 0.84 | 1.21 | 44.05 |
| 99 Speedmart Retail Holdings Bhd | 09 September 2024 | 1.65 | 2.33 | 41.21 |
| Azam Jaya Bhd | 11 November 2024 | 0.78 | 1.06 | 35.90 |
| Life Water Bhd | 13 November 2024 | 0.65 | 0.87 | 33.85 |
| MKH Oil Palm (East Kalimantan) Bhd | 30 April 2024 | 0.62 | 0.66 | 6.45 |
| Prolintas Infra Business Trust | 25 March 2024 | 0.95 | 0.96 | 1.05 |
| TMK Chemical Bhd | 12 December 2024 | 1.75 | 1.72 | -1.71 |
| Well Chip Group Bhd | 23 July 2024 | 1.15 | 1.12 | -2.61 |
| Mega Fortris Bhd | 11 November 2024 | 0.67 | 0.58 | -13.43 |
| Feytech Holdings Bhd | 21 May 2024 | 0.80 | 0.68 | -15.00 |
Source: Bursa Malaysia
The biggest standout was Keyfield International Berhad, which soared 161.11% from its IPO price, turning a RM1,000 investment into RM2,611 for investors.
Other strong gainers included Johor Plantations Group Berhad (+44.05%), 99 Speed Mart Retail Holdings Berhad (+41.21%), Azam Jaya Berhad (+35.90%) and Life Water Berhad (+33.85%), all delivering decent returns. Other companies, such as MKH Oil Palm (East Kalimantan) Berhad (+6.45%) and Prolintas Infra Business Trust (+1.05%), saw more moderate gains, still keeping investors in the green.
However, not all the IPOs were a success. TMK Chemical Berhad (-1.71%), Well Chip Group Berhad (-2.61%), Mega Fortris Berhad (-13.43%), and Feytech Holdings Berhad (-15.00%) ended up in the red.
So, the point of spreading out your investments across all 11 IPOs may make sense – especially if you cannot differentiate the quality and prospects of the companies when they were listed.
After accounting for all gains and losses, an initial investment of RM11,000 across the 11 Main Market IPOs in 2024 would have grown to approximately RM13,067, yielding a net profit of RM2,067 or an 18.8% return.
This performance surpassed those of traditional investment options such as fixed deposits, and even the benchmark FTSE Bursa Malaysia KLCI, which gained 2.9% in the past year (as of 31 January 2025). However, while IPO investing can offer substantial returns, it may also carry significant risks, as not all newly listed companies achieve long-term success.
Read Also: Complete Guide To Investing In The Bursa Malaysia ETF
Comparing IPO Returns To Other Investments
Fixed deposits (FDs), offering around 3-4% per annum, would have generated only RM440 on an RM11,000 investment at a 4% rate.
Investing in a FBM KLCI ETF, assuming an 8% return, would have grown the portfolio to RM11,880, still trailing behind IPOs. Contributing your money into the EPF would give you close to 5.5% return (as of 2023), but come with restrictions on using your funds in the future.
You may also choose to invest globally, via Interactive Brokers (IBKR). For example, investing in Singapore’s Straits Times Index in 2024 would have resulted in a 28.2% return (as at 31 January 2025). If you had invested in the S&P 500 in the US, you would have earned a return of 24.9% (as at 31 December 2025). You could have also invested in the iShares MSCI Malaysia ETF, listed in the US, and would have given you a 1-year return of 20.1% (as at 31 December 2024).
Should You Rely On IPOs As Your Primary Investment Strategy?
With the Bursa Malaysia expected to welcome another 60 IPOs in 2025, the market is poised for another exciting year, potentially rekindling greater public participation. However, IPO investing isn’t a guaranteed success – even though IPO performance in 2024 may have outperformed some investments.
While some IPO stocks surged, others struggled, highlighting the unpredictable nature of newly listed companies. Additionally, liquidity issues can arise, especially for smaller IPOs with lower trading volumes, making it harder to sell shares at favourable prices.
Given these risks, IPOs can be a valuable addition to your portfolio, but they shouldn’t form your core investment strategy. Ultimately, broad diversification across global markets will remain key to investors’ long-term financial success.
For investors looking to build long-term wealth, diversification is key. Balancing IPOs with blue-chip stocks and other stable investments, as well as global exposure, will help manage risks while you capitalise on growth opportunities.
Read Also: Malaysian Investors’ Guide To Opening An Account With Interactive Brokers (IBKR)
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