KUALA LUMPUR (May 11): Oppstar Technology Bhd (KL:OPPSTAR) surged 79% on Monday after its chip design unit secured an offer from the government to access Arm Ltd’s tokens.
The stock added 30 sen to close at 68 sen, its highest since Feb 14, 2025. The session saw more 110 million shares change hands, 47 times the average volume over the past 200 days, and also made it the fourth most active stock on Bursa Malaysia.
The development is positive for Oppstar, said Kenanga Investment Bank’s Tan Woon Pin, the sole analyst with regular coverage of the company. For now, however, he is keeping his “market perform” call and target price of 28 sen pending details from Oppstar’s management.
Oppstar Technology Sdn Bhd is among the first three local integrated circuit design firms offered token for the Arm Flexible Access (AFA) platform that provides access to Arm’s chip designs, so they can experiment, develop, and test products without paying full licensing fees upfront.
SkyeChip Bhd, en route to the Main Market, is also granted a token to access the AFA platform. Privately-held GreatAsic Technology Sdn Bhd, meanwhile, was given access to AFA, as well as higher-tier Compute Subsystems (CSS) token to high-performance design systems for direct chip creation.
Oppstar’s performance following the announcement could similarly serve as a positive rating catalyst for Skyechip when the firm makes its debut on May 20, said BIMB Securities technology analyst Steven Chong.
Chong, who has a “buy” call with a target price of RM1.18 on Skyechip ahead of its listing, said the “development may also indicate increasing willingness from the government to formalise approvals” related to the broader initiative that had previously faced delays amid scrutiny and investigations.
Skyechip’s initial public offering (IPO) closed last week with overwhelming investor demand. Applications for the public tranche exceeded the amount on offer by 95 times, as investors put in bids worth a total of RM3.04 billion, the largest since 2010, Maybank Investment Bank said on Friday.