Here is a piece of good news. 30 IPOs in Malaysia are expected for 2021. Initial Public Offering (IPO) is where the companies are selling their shares (some portion of it) to the public to raise funds for the business. Usually, this allows it to have funds to expand and the investors could also enjoy this potential growth.
Depending on how the business goes, the share price may rise, the dividends may be continuous. Just need to search for ‘dividend stocks’ to see which are some of these stocks. Do note that the reverse may also happen to the share price and if the company is running a loss, then dividends will not be declared as there is no profits to be shared with shareholders.
Article in themalaysianreserve.com. The Securities Commission Malaysia (SC) is expecting 30 companies to debut on Bursa Malaysia this year despite the uncertainties from Covid-19. SC chairman Datuk Syed Zaid Syed Jaffar Albar said that this is “healthy” when compared to just 19 new listings in 2020.
To compare, 30 companies debuted in 2019 consisting of four on the Main Market, 11 on the ACE Market and 15 on the LEAP Market, data on Bursa Malaysia’s website showed. In 2018, there were 22 IPOs. He said, “We see continued economic recovery which will lead to an increase in private investment as business confidence rises.” Please do read the full article here: Article in themalaysianreserve.com
IPOs also meant two things. One is that the company has done well enough to pitch themselves to the public to participate in their future growth. Seriously, if the company did not do well, I would be worried to give them my hard earned money. Do note thought that part performance does not guarantee future performance at all.
Second thing is that the public is now ready again to invest into some of these IPOs. If the market was still extremely negative, more people would prefer to keep all their funds in the bank. In extremely safe investments. However, when sentiment becomes more positive, then they would now be more willing to diversify, to take some risks so that they may also get potentially higher returns too.
What these two things say about the market? One word, positive. Just do not be speculative and everything would be just fine. Happy understanding and all the best in your IPO share applications too.
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