Initial Public Offering (IPO)
An Initial Public Offering (IPO) is a significant milestone in a company’s journey, marking its transition from a privately held entity to a publicly traded company. Through an IPO, a company offers its shares to the general public for the first time, allowing individuals and institutional investors to become shareholders.
In Malaysia, the process is regulated and overseen by the Securities Commission Malaysia (SC) to ensure transparency and investor protection. Bursa Malaysia, Malaysia’s primary stock exchange, is the venue where IPOs are conducted and where shares of newly listed companies are traded after going public.
IPOs hold significant importance in the Malaysian financial market for several reasons:
- Capital Raising: IPOs provide companies with access to capital, which can be used for expansion, debt reduction, research and development, and other growth initiatives.
- Investor Participation: IPOs allow individual and institutional investors to invest in promising Malaysian companies, promoting a broader investor base and democratising ownership.
- Economic Growth: By going public, companies can stimulate economic growth, create jobs, and contribute to the development of various sectors within Malaysia.
- Market Development: IPOs contribute to the development and maturity of the Malaysian capital markets, making them more attractive to both domestic and international investors.
