KUALA LUMPUR (Feb 25): Malacca Securities Sdn Bhd has launched Malaysia’s first Initial Public Offering (IPO) Financing platform via its M+ Global trading platform, setting a new benchmark for retail investors aiming to tap into high-demand listings.

The initiative seeks to enhance accessibility to IPO investments by allowing investors to leverage funds and increase their subscription power without tying up all their capital.

“In 2024, Bursa Malaysia saw a boom in IPOs, with a total of 55 listings and a combined market capitalisation of RM31.37 billion,” said Malacca Securities in a statement.  

Notably, 87% of these IPOs closed above their listing price on debut, delivering an average gain of over 77% for successful subscribers.

“With this pioneering service, we aim to give investors a better chance at securing IPO shares,” said Malacca Securities managing director Lim Chia Wei.

“Our financing solution is democratising access, giving all investors the ability to maximise their IPO participation,” she added.

Using the recent Oriental Kopi Holdings Bhd (KL:KOPI) IPO as an example, Lim explained how a RM10,000 investment had a mere 5.04% allotment success rate, generating RM3,480 in profits on debut.

However, with a five times leverage, the same investors could boost their buying power to RM50,000, potentially increasing profits to RM5,220.

Lim highlighted that M+ Global’s IPO Financing aims to offer a solution to help investors increase their allocation chances. The financing process is designed to be seamless, instant, and transparent, with no charges for unsuccessful allocations.