KUALA LUMPUR (April 9): Cuckoo International (MAL) Bhd said on Wednesday it is delaying its Bursa Malaysia listing by two months due to the current global market volatility.

The listing of Cuckoo International, originally planned for April 30, is now anticipated to be completed by June 24, the company said in a statement. Application for its initial public offering shares remains open and will now close on June 5, it said.

“As the market presents near-term challenges, we believe that this is a prudent decision,” said Cuckoo International chief executive officer Hoe Kian Choon. “We remain confident in the company’s long-term prospects and committed to maintaining the momentum.”

Under the listing regulations, Cuckoo International will have six months to complete its IPO upon approval, which the company received on January 21, 2025 from the Securities Commission.

The delay comes as global markets reeled from the US’ sweeping tariffs that came into force at 0401 GMT or 12.01pm Kuala Lumpur time, hitting all of its trading partners. The FBM KLCI lost more than 40 points, or nearly 3%, amid wide losses in Asian markets.

The rout dragged SumiSaujana Group Bhd (KL:SUMI) underwater during its Wednesday debut. The specialty chemicals firm ended its first day of listing 25% below its IPO price, the worst flop since ACO Group Bhd (KL:ACO) declined 45% on its maiden day in March 2020.

There were already signs of investors’ wariness since March due to the Trump tariffs. During the month, Bursa Malaysia welcomed six new companies on the Main Market and ACE Market, and five declined 5% to 22% below their IPO price on their listing day. Saliran Group Bhd (KL:SALIRAN) lost the most value on its debut before SumiSaujana.

However, telecom services firm Reach Ten Holdings Bhd and WTEC Group Bhd, a foam and fabric products maker, have decided to brave the markets and are pushing ahead with their IPOs.

For Reach Ten, the global uncertainties are “beyond our control, but this IPO is part of Sarawak’s ecosystem for nation-building and growing its digital economy", said Danny Wong of M&A Securities, who is advising the company on the IPO.

Reach Ten is hoping to be the first Sarawak-based company in 15 years to list on the Main Market and raise up to RM156 million. The company is scheduled for listing on May 2.

"We’re expediting capital market fundraising because our investors are confident in the long-term value,” he said on Wednesday after the launch of its IPO.

WTEC Group, meanwhile, is charging ahead with its IPO due to its minimal exposure to US markets. Listing has been scheduled for April 29 on the ACE Market.

“We remain confident in proceeding with the IPO as our market is not reliant on the US," managing director Tan Kok Kheng said during WTEC Group’s own prospectus launch on Wednesday. “So, we are not too worried” about the US tariff, he added.

Cuckoo International launched its IPO on March 26, seeking to raise more than RM470 million from the country’s biggest IPO since August 2024.

However, Cuckoo International will allow investors who have submitted their applications to withdraw from the IPO. The company also said it will issue a supplementary prospectus and announce details of the withdrawal process in “due course.”

The original IPO prospectus, issued on March 26, is valid for six months.

The public issue of new shares at an indicative price of RM1.29 will raise almost RM185 million for Cuckoo International, according to the earlier prospectus. An institutional offering of existing shares through book building could potentially raise some RM286 million.

The final IPO price would be RM1.29 per share or the institutional price, whichever lower. Cuckoo International will announce the final price on June 10.

Cuckoo International thanked all stakeholders for their ongoing support and confidence as the company takes “considered steps towards a successful listing that will underpin its long-term growth and value proposition.”

Read also:
Cuckoo launches Malaysia’s biggest IPO in seven months at RM1.29 per share
Cuckoo Malaysia files for Main Market IPO to raise funds for expansion 
Cuckoo International gets RHB, AmInvestment to back upcoming IPO's retail tranche