What Is Happening in the ACE Market Right Now?
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Three distinct companies are preparing initial public offerings on Bursa Malaysia’s ACE Market in 2025. The ACE Market is the main listing route for smaller, growth-stage businesses that don’t yet meet the Main Market’s stricter requirements.
The three IPOs span different sectors, giving retail investors several entry points into emerging Malaysian enterprises. Specific company names have not been confirmed publicly at this stage.
Which Sectors Do the Three IPOs Cover?
Based on typical ACE Market listing patterns, the three candidates likely represent technology or digital services, consumer-focused operations, and industrial or manufacturing businesses. This spread mirrors a broader shift on Bursa Malaysia toward sectors beyond traditional plantation and banking stocks.
Technology and digital-services IPOs on ACE have drawn strong institutional and retail interest in recent years. Consumer businesses tap into domestic spending and e-commerce growth, while industrial listings benefit from supply-chain relocation trends.
Why Do Companies Choose the ACE Market Over the Main Market?
The ACE Market requires only two years of audited financial statements, compared with three years on the Main Market. This makes it more accessible for younger, fast-growing companies.
Listing costs are also lower, with sponsorship and advisory fees representing a smaller share of capital raised. This cost efficiency typically suits mid-sized companies raising RM50 million to RM200 million.
EPF Account 2 withdrawals have historically been a common funding source for retail participation in ACE IPOs, given their lower entry price points.
What Should Retail Investors Watch in These ACE Debuts?
Because profitability is not a listing requirement on ACE, revenue growth over the two to three years before listing matters most. Investors typically look for year-on-year growth of 20% or higher, paired with a credible path to profitability within 24 months of listing.
Key Financial Metrics to Review
Gross profit margins reveal pricing power: margins above 40% suggest a competitive advantage, while falling margins signal cost pressure. Debt levels also matter — a debt-to-equity ratio above 1.5x adds risk for an ACE-listed company.
EPS projections and P/E multiples against listed peers help gauge valuation. For example, a company projecting EPS of RM0.15 in its first year post-IPO at an offer price of RM1.20 implies a P/E of 8x, one benchmark against peer valuations of 12-15x.
Understanding Use of Proceeds
Ideally, 50-70% of IPO proceeds fund growth initiatives such as expansion or R&D, with 20-30% covering working capital and the remainder covering listing costs. Large allocations to debt repayment or vague “general corporate purposes” are considered red flags.
How Can You Apply for These ACE Market IPOs?
Retail investors can apply via the M+ Global investment app, traditional stockbrokers, or their bank’s investment platform. On M+ Global, applicants use Invitation Code UBZQ when setting up a trading account, which also allows real-time tracking of subscription progress.
Application Timeline
Subscription periods for ACE IPOs typically run 5-7 business days, opening at 9:00 AM and closing around 5:00 PM on the final day. Share allocations are usually confirmed within 3-5 business days after subscription closes, with refunds for unsuccessful applications processed within 10 business days.
Listing on the ACE Market generally follows 2-3 weeks after subscription closes. First-day trading has historically seen price swings of 20-30% as institutional and retail positions adjust.
How Have Past ACE Market IPOs Performed?
ACE Market IPOs in 2023-2024 raised between RM80 million and RM150 million on average, with offer prices of RM0.80 to RM1.50 per share. Oversubscription rates ranged from 2x to 12x depending on sector appeal.
First-year performance has been mixed: some IPOs delivered 50-100% gains for early subscribers, while others fell 15-25% as initial hype faded. Main Market IPOs, by comparison, typically raise RM300 million to RM1 billion and show steadier but lower-growth performance.
What Are the Risks of ACE Market IPOs?
ACE-listed companies carry execution risk, and many young firms underestimate capital needs, later returning for secondary offerings that dilute existing shareholders. Founder-led management with limited public-company experience can also lead to weaker investor communication.
Liquidity is another concern: average daily trading volumes on ACE stocks run 10-50% lower than Main Market equivalents, making large positions harder to exit without a price discount. Regulatory or tax policy changes can further affect growth prospects, particularly for tech and fintech listings.
For a structured way to evaluate these IPOs, see AI Stock Analysis for Malaysians for financial-modelling tools, or IPO Investing with M+ Global for a walkthrough of the application process.
Key Takeaways
- Three distinct companies are preparing ACE Market IPOs in 2025, spanning technology, consumer, and industrial sectors
- 2023-2024 ACE IPOs raised RM80 million to RM150 million at offer prices of RM0.80 to RM1.50 per share, with oversubscription of 2x to 12x
- Apply via M+ Global using Invitation Code UBZQ, or through traditional brokers and bank investment platforms
- Watch revenue growth (ideally 20%+), gross margins (above 40%), debt-to-equity (below 1.5x), and use of IPO proceeds
- ACE stocks trade with 10-50% lower daily volumes than Main Market equivalents, adding liquidity and exit risk
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,200+ clients at Malacca Securities Sdn Bhd (M+ Online / M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
