This article first appeared in Forum, The Edge Malaysia Weekly on May 12, 2025 - May 18, 2025

I have been asked recently the age-old question: is there a best time to list a company? This is something that resurfaces often, especially with current narratives surrounding global trade tensions, tariff uncertainties and a shifting economic landscape.

During a Hari Raya open house, the question came up again — when exactly is the right time to take a company public? It’s a fair question and an important one, particularly for business owners and entrepreneurs eyeing growth through the capital markets. But if there’s one thing I have learnt over the years working on initial public offerings (IPOs), it is this: there is no perfect time to list. However, there is a best time to get ready, and that time is now.

Let me share two stories that illustrate this point.

The first dates back to March 2020. We had just completed our role as Reporting Accountants for a company set to be listed on Bursa Malaysia. The listing ceremony was scheduled for March 18, 2020. What none of us anticipated was that this date would also mark the very first day of the movement control order (MCO) due to the Covid-19 outbreak. At that point, no one was entirely clear on what the MCO entailed. Some viewed it as a lockdown or curfew. The atmosphere was filled with uncertainty, fear and a sense of the unknown.

Out of caution, and unsure of the restrictions in place, we, the Reporting Accountants, opted not to attend the Gong Ceremony, which is normally a celebratory milestone. That decision marked a first for us and to this day remains the only Gong Ceremony we have missed. Ironically, despite the looming global uncertainty, the listing went exceptionally well. The company performed strongly on its debut and continued to thrive in the months that followed. That moment, as odd as it sounds, marked the beginning of a surprisingly active IPO market.

In fact, in 2020 alone, we completed six of the 18 Reporting Accountants’ assignments for IPOs listed that year, making us the top in terms of IPO completions. Since the start of the MCO until the end of 2024, we have completed 24 IPO reporting cases, more than in any comparable period. Today, we have 85 dedicated professionals in our IPO reporting team, making it the largest team of its kind in the country.

So much for bad timing.

There is another side to the story. During the pandemic, the glove manufacturing industry experienced an unprecedented boom. Demand skyrocketed and so did profits. Several companies in the sector seized the moment and began their IPO preparations. Given the timeline involved, many of them started during the peak of the sector’s bull run.

But IPOs take time. It is a long process that involves audits, due diligence, regulatory approvals and often a shift in corporate structure and mindset. By the time some of these companies reached the tail end of their submission processes, the market had turned. The bull run lost steam, valuations dropped and several IPO plans had to be shelved.

The lesson here is clear. Timing is unpredictable. What seems like the perfect window today may not hold tomorrow, and what seems like an uncertain time may turn out to be the start of something remarkable.

So, is there a best time to list? Not really. But there is a best time to prepare your company for an IPO, and that time is now.

Unlike other business decisions, IPOs cannot be executed on impulse. The listing process involves a long runway. From corporate restructuring to financial audits and regulatory compliance, each phase takes time and planning.

One of the biggest misconceptions is that a company can go public whenever it decides to. In reality, the preparatory phase can stretch across 12 to 24 months or even longer, depending on the state of readiness. Common issues such as cash flow gaps or incomplete financial records that require reauditing of the past three years. Delays in securing licences or addressing compliance gaps can add further time. That’s why the conversation around IPOs shouldn’t start with when do you want to list, but rather, when do you want to start preparing.

Now, let’s talk about why companies pursue listing in the first place. An IPO isn’t just about raising funds. It is a strategic move that unlocks long-term potential. For many companies, listing provides a boost in visibility, attracting customers, partners and top talent. It also strengthens the capital base, giving businesses the financial muscle to scale, invest and innovate. Importantly, it separates ownership from management, enabling clearer governance structures and succession planning.

Being listed typically brings better valuations, especially for niche players or companies with strong growth trajectories. It creates liquidity for existing shareholders and investors, and offers employees the prospect of stock-based rewards, aligning motivation with long-term company performance. There is also the intangible benefit of market recognition. Public-listed companies often enjoy greater credibility, especially when looking to expand internationally or attract institutional investors.

Of course, the IPO journey isn’t without its challenges. One of the most common involves conflicts of interest. Founders and early shareholders must ensure that their personal priorities align with the expectations of incoming public investors. Another major hurdle is the ability to stay focused on day-to-day business operations during the IPO process, which can easily consume management’s time and energy.

Regulatory compliance is another critical area. Statutory breaches, whether past or pending, are scrutinised heavily and may stall the process. Companies must also ensure they have all the right licences in place and that their legal structure aligns with listing requirements. On the accounting side, issues such as inconsistent policies or outdated treatments need to be addressed early. Lastly, internal resources must be allocated wisely. Preparing for an IPO requires time, expertise and commitment across various departments.

Planning, therefore, is everything. Before embarking on the IPO path, companies should be clear on their purpose. Is it about expansion, unlocking value or legacy planning? Each motivation carries different implications. Businesses should also evaluate their options, which board offers the best strategic fit. Understanding where the company sits in its market segment is equally important. Positioning as a leader, or demonstrating a credible growth story, can make a significant difference to how the IPO is received.

Thinking from an investor’s perspective is also crucial. Investors are not only buying into numbers. They are investing in leadership, governance and vision. The ability to tell a clear and compelling story, backed by sound financials, often defines the listing experience.

And finally, the most important step is to start early. Preparing for an IPO is not something that should be left until the business feels ready. The readiness is built through the process itself.

At Baker Tilly, we have seen this play out time and again. Because we have built dedicated teams and invested early in capacity and capability, we have been able to respond swiftly when market windows open. That preparation has enabled us to lead the IPO reporting space during some of the most turbulent and unpredictable years in recent memory.

An IPO is just a chapter in a company’s growth story, not the destination. The key is to treat it like any other business milestone: plan well, prepare early and keep your eyes on the long-term goal.

Don’t wait for the stars to align. Start building your IPO journey today.

Datuk Lock Peng Kuan is managing partner (audit and assurance) at Baker Tilly Malaysia

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