By Dexter Chia, licensed dealer’s representative (R336), M+ Global / Malacca Securities Sdn. Bhd. · Last updated 28 September 2026 · 中文版
Popular Bursa Malaysia IPOs are often oversubscribed many times over, so most retail applicants get a small allotment or nothing at all. Malacca Securities introduced IPO financing on its M+ Global app in 2024, and it remains one of the few Malaysian brokers offering it in-app. This guide explains how it works, what it costs, the risks, and how to apply.
What is IPO financing?
IPO financing lets you borrow part of the money for an IPO application. Instead of paying the full application amount in cash, you pay a portion (the principal) and M+ Global finances the balance. A bigger application gives you a better chance in the ballot, while leaving the rest of your capital free for other investments.
How M+ Global IPO Financing works
- Open an M+ Global account. Download the M+ Global app and sign up. Use invitation code UBZQ if you want me as your remisier.
- Go to the IPO section. In the app, open the IPO menu (Trade > Bursa > IPO) and choose an IPO that has financing enabled. Not every IPO offers it.
- Choose financing instead of cash. Select the financing method and your application size.
- Pay your principal. You pay a percentage of the application, for example RM1,000 on a RM10,000 application at 10%, plus any applicable financing fee. M+ Global finances the rest.
- Wait for the ballot. If you are allotted shares, they are credited to your account. If you get nothing, there is no charge.
How much leverage can you use?
The financing ratio depends on the IPO and on M+ Global’s terms at the time. Leverage of 5x and 10x has been offered on past IPOs. For example, at 5x, RM100,000 of your own money can support a RM500,000 application. If you want a higher leverage level, speak to your remisier before the application closes.
The financing pool for each IPO is limited and allocated on a first-come, first-served basis, so apply early if you plan to use it.
Costs of IPO financing
| Situation | What you pay |
|---|---|
| No allotment | No charge |
| Allotment worth less than or equal to your principal | No financing interest; you have simply used your own cash |
| Allotment worth more than your principal | The difference is additional financing, charged at 8% per annum, compounded monthly, until repaid |
A financing fee may also apply when you apply with financing. Check the details shown in the app for each IPO before you submit.
How to repay
You can sell the allotted shares after listing. The sale proceeds go into your trading account and settle the financing automatically. You can also deposit cash into your trading account to repay.
Benefits
- Better balloting odds: a larger application can improve your chance of an allotment in oversubscribed IPOs.
- Lower capital needed: you don’t have to lock up the full application amount.
- No cost if unsuccessful: no charge when you receive no allotment.
- Flexible repayment: sell after listing or top up with cash.
Risks you must consider
- Interest cost: the financed amount is charged interest, which reduces your net return.
- Amplified losses: if the IPO lists below its offer price, a larger allotment means a larger loss.
- Repayment obligation: you must repay the financing even if the IPO performs poorly.
- No guarantee: a bigger application improves your odds but never guarantees an allotment.
Treat IPO financing as a tool for IPOs you would be happy to own at the offer price, not as a way to gamble on listing-day gains. New users should start with a small principal.
Who should use IPO financing?
It suits investors who already apply for IPOs regularly, understand the prospectus, and can afford to hold or repay if the listing disappoints. If you are new to IPOs, start with how to apply for an IPO in Malaysia first.
Want to use IPO financing on the next Bursa IPO?
👉 Open an M+ Global account with invitation code UBZQ
💬 WhatsApp me to check whether the IPO you’re interested in has financing and what leverage is available.
I’m Dexter Chia, a licensed remisier (R336) at Malacca Securities with 2,200+ clients. Related guides: Bursa eIPO subscription on M+ Global · Hong Kong IPOs via M+ Global · Best stock broker in Malaysia 2026.
See which IPOs are coming up in our Malaysia IPO 2026 list.
Frequently Asked Questions
What is M+ Global IPO Financing?
A feature in the M+ Global app that lets you apply for Bursa Malaysia IPO shares by paying only part of the application amount, with M+ Global financing the rest.
Is there a charge if I don’t get any IPO shares?
No. There is no charge if you receive no allotment.
What interest is charged on IPO financing?
If the value of your allotted shares exceeds your principal, the difference is charged 8% per annum, compounded monthly, until repaid.
How much leverage can I use?
It depends on the IPO and M+ Global’s terms at the time. Leverage of 5x and 10x has been offered on past IPOs. Ask your remisier if you want a higher level.
Can I use financing for every IPO?
No. Only IPOs with financing enabled offer it, and each IPO’s financing pool is limited and allocated first come, first served.
How do I repay IPO financing?
Sell the shares after listing so the proceeds settle the financing automatically, or deposit cash into your trading account.
What are the main risks?
Interest costs, larger losses if the IPO lists below its offer price, having to repay even if the IPO performs poorly, and no guarantee of an allotment.
This article is for general education only and is not investment advice. IPO financing terms are set by Malacca Securities and may change; check the latest terms in the M+ Global app. Leveraged investing magnifies both gains and losses.
