2023 IPOs lose lustre as more than half trade below issue price

This article first appeared in The Edge Malaysia Weekly on January 12, 2026 – January 18, 2026

WHEN the curtain fell on 2023, Bursa Malaysia had welcomed 31 new listings in what was heralded as a year of post-pandemic renewal. Of the 31 initial public offerings (IPOs), seven were on the Main Market and 24 on the ACE Market (excluding the LEAP Market).

Two years on, the 2023 IPO cohort has delivered mixed results in terms of share price performance. As at Dec 31, 2025, 16 were trading below their IPO price, while the remaining 15 had traded higher (see table).

This contrasts with their debut performance, when investor sentiment was stronger. On their maiden trading day, 24 stocks closed above their IPO prices, while seven traded below the issue price.

Beyond share price performance, The Edge also examined the financial health of these companies two years after listing to assess their staying power.

Of the 31 companies tracked, 21 had more cash than borrowings as at Sept 30, 2025. The remaining 10 companies were in a net debt position — comprising largely capital-intensive manufacturers that had geared up to fund capacity expansion.

A compilation of data by The Edge shows that the majority of Main Market listings in 2023 are now broadly underperforming. Five of the seven Main Market stocks were trading below their IPO prices, with the remaining two trading above their IPO prices.

The 24 ACE Market cohort fared better, with 13 staying above IPO prices and 11 slipping below.

The weakest Main Market performer was MST Golf Group Bhd (KL:MSTGOLF), whose shares plunged more than 70% to 22 sen on Dec 31, from its IPO price of 81 sen. Debuting in July 2023, MST Golf is the first golf equipment retail chain operator to list on Bursa Malaysia, raising proceeds of RM129.6 million from its public issuance of new shares.

The stock is trading at a price-earnings ratio (PER) of 84.52 times, making it the most expensive stock among the 2023 listings despite the steep drop in its share price.

Industrial names CPE Technology Bhd (KL:CPETECH) and Cape EMS Bhd (KL:CEB) fared no better. CPE had fallen 50% to 53.5 sen, from its IPO price of RM1.07, while electronic manufacturing services Cape EMS had dropped 70% to 27 sen, from its issue price of 90 sen. Cape EMS had recorded a cumulative loss of RM48.11 million in the past six quarters — making it the only Main Market-listed company that showed a loss-making position during the period.

In early 2024, Cape EMS’s fourth-quarter earnings for its financial year ended Dec 31, 2023, came in below market expectations. The company guided for lower earnings in FY2024, which weighed on its share price and dampened investor confidence.

Prior to that, in late 2023, Cape EMS raised RM73.83 million through a private placement of 69 million shares priced at RM1.07 each to fund the US$16.5 million acquisition of US-based EMS player iConn Inc.

Similarly, property developer Skyworld Development Bhd (KL:SKYWLD) struggled to ignite investor interest. The stock, which was listed at 80 sen, closed 2025 at 49 sen, or a 38.8% decline. The weaker share price performance was weighed down by its earnings downtrend. The group’s net profit more than halved to RM10.78 million for the first half of the financial year ended Sept 30, 2025 (1HFY2026), from RM24.52 million a year ago.

Relisted in May 2023 at 70 sen, DXN Holdings Bhd (KL:DXN) closed 2025 at a 27% discount to its IPO price of 51 sen, even though the direct-selling health supplement giant consistently delivered on the bottom line. It had generated cumulative profits of RM473.2 million over the past six quarters. DXN was also sitting on a cash pile of RM616.23 million as at Aug 31, 2025, in contrast to borrowings of RM178.14 million.

Property developer Radium Development Bhd (KL:RADIUM) managed to stay only marginally above water, closing 2% higher at 51 sen versus its IPO price of 50 sen.

The sole outlier in the Main Market space appears to be Kumpulan Kitacon Bhd (KL:KITACON). The construction outfit eked out 2.94% gains at 70 sen compared to its issue price of 68 sen. The gain of less than 3% may look modest, but it stands out in a cohort dominated by double-digit declines.

Kitacon’s resilience was supported by cumulative net profit of RM79.66 million over the past six quarters and net cash of RM29.32 million against RM14.49 million in borrowings as at Sept 30, 2025.

If the Main Market told a story of broad underperformance, the ACE Market delivered mixed results. Some ACE Market stocks have more than doubled since their 2023 IPOs, while others have lost more than half their value.

Among the top performers, Wellspire Holdings Bhd (KL:WELLS) stood out. The Thai-based snack food distributor surged 191.3% to 67 sen, from its IPO price of 23 sen. The group, whose main product is sunflower seeds, has been the exclusive distributor of ChaCha brand sunflower seeds and nuts for the Thai market since January 2013.

The rally was underpinned by strong profitability, with a cumulative net profit of RM13.01 million for the past six quarters and a net cash balance as borrowings remained negligible compared to cash and cash equivalents of RM32.63 million as at Sept 30, 2025.

Wellspire’s valuation expanded sharply, with its PER rising from 14.74 times at IPO to 39.41 times, making it one of the most expensive stocks in the 2023 IPO cohort.

Industrial player Critical Holdings Bhd (KL:CHB), which later transferred to the Main Market in October 2025, rose 150% to 87.5 sen, from its IPO price of 35 sen. The group strengthened its balance sheet materially, growing cash to RM100.84 million while keeping borrowings around RM3 million. Before raising RM26.02 million from its IPO, its cash pile stood at RM9.71 million.

Infrastructure utilities engineering solutions provider Jati Tinggi Group Bhd (KL:JTGROUP) emerged as another winner, climbing nearly 139% to 64.5 sen from its IPO price of 35 sen. Its growth was supported by its order book, which stood at RM710 million as at Sept 30, 2025, providing earnings visibility for the next two to three financial years.

At the other end of the spectrum, several ACE Market IPOs disappointed.

Packaging solutions provider L&P Global Bhd (KL:L&PBHD) was the worst performer, with its shares down 65% to 10.5 sen, from the IPO price of 30 sen. Despite reporting cumulative profits of RM5.95 million, its borrowings of RM25.65 million exceeded cash balances, while its end-2025 PER ballooned to 45.65 times, from 11.72 times when it listed.

Construction engineering solutions and services provider Plytec Holding Bhd (KL:PLYTEC) lost nearly 59% to 14.5 sen, from its IPO price of 35 sen; and aesthetic medical services provider DC Healthcare Holdings Bhd (KL:DCHCARE) fell 54% to 11.5 sen, from its IPO price of 25 sen. 

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