Malaysia IPO Boom Amid Ringgit and Inflation Challenges

Investors eagerly bought shares of 99 Speed Mart, the largest mini-market chain in Malaysia, in the country’s biggest initial public offering (IPO) in seven years. The company raised 2.36 billion ringgit (US$542.8 million) during its market debut. Stocks opened at 1.85 ringgit per share, 12.1% higher than the initial price of 1.65 ringgit. By midmorning, over 3 million shares had traded on Bursa Malaysia. Finally, the stock peaked at 1.92 ringgit before the midday break.

Lee Thiam Wah founded 99 Speed Mart 1987. It started as a small sundry store and has grown into a retail powerhouse. Following its successful IPO, the company has ambitious plans to expand further. It aims to open 250 stores annually and increase its total from 2,526 outlets to 3,000 by 2027. Second-quarter profits surged 66.3% to 125.5 million ringgit, driven by higher sales from new outlets and its expanding e-commerce platform, showcasing strong business performance ahead.

The IPO market in Malaysia continues to thrive, with 99 Speed Mart’s listing being the largest since Lotte Chemical Titan Holding’s IPO in 2017. This year, the country’s IPO activity has raised US$1.3 billion, double the amount from the same period in 2022. Other successful listings, such as MR DIY and Farm Fresh, further underscore Malaysia’s growing prominence as a regional hub for equity offerings. Bursa Malaysia Chief Executive Muhamad Umar Swift anticipates a robust pipeline of IPOs stretching into 2026. This pipeline includes major players like U Mobile, which expects to raise over US$500 million by 2025.

However, despite the IPO boom, Malaysia still faces significant economic challenges. A UNICEF report highlights that inflation has severely affected low-income families, particularly impacting children’s access to proper nutrition and education. Furthermore, the ringgit remains weak, far below its 2017 levels. While the stock market remains strong, these broader economic issues continue to strain the country’s most vulnerable populations.

As 99 Speed Mart’s IPO garners investor attention, Malaysia’s leadership must work to balance market growth with tackling the pressing issues of inflation and currency depreciation, which disproportionately affect poorer households.