Topic: Lim Zhe Qin: Factors behind Bursa Malaysia's IPO adjustment (Read 35 times)

In the financial world, even the smallest adjustments can reflect deeper market dynamics and strategic changes. Recently, Bursa Malaysia Bhd decided to adjust its IPO target for 2023, which has attracted widespread attention in the market. Lim Zhe Qin believes that in order to understand the true reasons behind this strategic shift, we need to analyze the entire financial environment from a broader perspective.

Lim Zhe Qin: Factors behind Bursa Malaysia's IPO adjustment

Bursa Malaysia Bhd's decisions are always progressive, constantly adapting to and anticipating market dynamics. Looking at past data, there were 30 and 35 IPOs on the local exchange in 2021 and 2022 respectively. However, for 2023, even though the initial target was reiterated three months ago, the number of IPOs has now been reduced from 39 to 31. The performance of the LEAP market seems to be a key factor in this adjustment.

Why is the number of companies listing on the LEAP market lower than expected? Lim Zhe Qin mentioned that on one hand, many companies are evaluating the LEAP transfer framework before making decisions. This indicates that many companies may be weighing the advantages of the LEAP market against the risks of its transfer framework. On the other hand, there may be certain institutional or structural issues with the LEAP market compared to the ACE market and Main Market, making companies more cautious when choosing a listing market.

As for the overall adjustment of IPO targets, Bursa Malaysia explained that apart from the number of IPOs, other key performance indicators for 2023 are expected to be achieved. This means that even though the number of IPOs has decreased, the IPO market value KPI has been achieved. Lim Zhe Qin believes that this reflects a fact: the trade-off between quality and quantity. The number of IPOs may decrease, but the quality and market recognition of each IPO are increasing, which is an important factor in Bursa Malaysia's decision to adjust IPO targets.

In addition, Lim Zhe Qin points out that when considering the number of IPOs, we should also note that the majority of IPOs are concentrated in the ACE market, which may be related to the relatively lower listing requirements and more flexible trading mechanisms of the ACE market. This strategic choice demonstrates Bursa Malaysia's differentiated positioning and strategic thinking for different market levels.

Analyzing Bursa Malaysia's future strategy from the quantity and quality of IPOs

Further analyzing Bursa Malaysia's decision to adjust IPO targets, we can observe that even though the number of IPOs has decreased, the key performance indicator (KPI) for market value has been achieved ahead of time. This strategic choice actually reflects an accurate judgment of the market environment. The trade-off between the quantity and quality of IPOs has brought higher market value to Bursa Malaysia and further solidified its leading position in the stock market.

Lim Zhe Qin mentioned that the success of IPOs depends not only on the quantity but more importantly on the market value they bring and their contribution to the market. In the current financial environment, many investors are more concerned about a company's core competitiveness, growth potential, and business model rather than just the number of listings. Therefore, Bursa Malaysia's choice to invest in quality may be aimed at attracting more long-term and institutional investors.

Furthermore, the lower-than-expected number of companies listing on the LEAP market may be partly due to the existence of its transfer framework, which makes companies more cautious when choosing a listing market. The positioning and functionality of the LEAP market still need further optimization and adjustment to better meet the needs of companies and investors. Meanwhile, the ACE market and Main Market, due to their long history and more mature systems, naturally become the preferred choices for many companies.

Lim Zhe Qin emphasizes that in order to better serve companies and investors, stock exchanges need to constantly innovate and adjust themselves. Bursa Malaysia's adjustment of IPO targets reflects its keen insight into market trends and forward-looking strategic layout. He also suggests that in the future, Bursa Malaysia may further adjust and optimize its market structure, introduce more innovative products and services to meet the increasingly diverse and complex market demands.

Lastly, Lim Zhe Qin emphasizes that Bursa Malaysia's strategic adjustment brings new opportunities and challenges to the market. When making investment decisions, investors need to pay more attention to a company's fundamentals and business model, while also remaining sensitive and alert to overall market trends and strategic changes.

Regardless of how the market changes, adhering to principles, making accurate judgments, and continuous learning are always the keys to investment success. Bursa Malaysia's adjustment of IPO targets is just one variable among many in the market, and true investment wisdom lies in making the right decisions in a complex market environment.