What is an IPO?

IPO stands for Initial Public Offering. It's when a private company sells shares to the public for the first time on a stock exchange like Bursa Malaysia. Once listed, anyone can buy and sell those shares.

Why do companies go public?

Companies list on Bursa Malaysia for several reasons:

• Raise capital — The IPO raises money that the company can use to expand, pay down debt, or invest in new projects.
• Exit for founders and early investors — Early backers get a chance to cash out some of their holdings.
• Brand visibility — Being listed on Bursa Malaysia gives a company credibility and public recognition.
• Employee incentives — Public shares make it easier to offer stock options and attract talent.

Why should you care?

As a retail investor, IPOs give you the opportunity to invest in a company at its listing price — before the market starts trading it. Many IPOs on Bursa Malaysia list at a discount and trade higher on listing day, though past performance is never guaranteed.

Key players in an IPO

• Issuing house — Manages the IPO application process (e.g., Tricor, MIH, AscendServ).
• Principal adviser — The investment bank or firm guiding the company through the listing.
• SC (Securities Commission) — The regulator that approves the IPO prospectus.
• Bursa Malaysia — The stock exchange where shares are listed and traded.

What's next?

Once a company lists, its share price is determined by supply and demand — just like any other stock. Investors who applied during the IPO may receive shares (allotment) and can choose to hold or sell them on listing day.

Tip: Use our Apply Amount Calculator to find the right subscription tier for any upcoming IPO.