IPO or Initial Public Offering that a private company needs to undertake for going public. A company may go public for number of reasons. Usually the purpose of going public is for raising capital from investors or may be simply diluting the stake of founders and promoters. Many times, companies go public only for improving their visibility.
IPO is a very important milestone in the timeline of a company. After IPO the company can get listed on stock exchanges and investors can buy or sell its shares. IPO can be a great opportunity for investors too for buying the shares of a company.
Today, we will take a look at some of the leading IPOs expected in the next few days and also discuss about the application process for them.
Table of Content
How can I get IPO in Malaysia?
Interest in Bursa Malaysia IPO
It has been observed that newbies as well as seasoned investors, both have a very high interest when it comes to Bursa Malaysia IPO. The reason being that when a company goes public and offers its shares to the public for the first time, there are high chances of earning a good return.
Another reason, that people have a high interest in Bursa Malaysia IPO is that these IPOs are approved after adhering to stringent guidelines and evaluations by authorities. Every company which plans for an IPO must be approved after screening by the Securities Commission of Malaysia (SC). Also, the company’s prospectus is approved at multiple levels after scrutiny. Investors have a high confidence in these regulatory authorities and since the all the companies going for an IPO are scrutinized by them.Investors have a high confidence in them.
Application for IPO
You can apply for an IPO in two ways, online and offline. Offline applications can be further placed in two different ways. Let us take a look at all the three ways to apply for Bursa Malaysia IPO.
Using Application Forms (White): This is the traditional way of applying for an IPO. You simply get an application form from the issuing house or stockbroker and then follow the following steps:
Fill the form with your details as per your identity documents
Attach the baker’s order payment slip according to the value of shares you are applying for.
Submit or mail the completed form to the issuing house.
Using ESA: ESA or Electronic Share Application uses an ATM for placing an application for Bursa Malaysia IPO. For applying for an IPO using an ESA, you need to have a valid CDS account, savings account and an ATM card. The participating financial institution in the IPO should have issued your ATM card.
Now use an ATM and follow the onscreen instructions. You will need your ATM pin, CDS account number and the stock code of the IPO for which you want to apply.
You will get an ATM slip once your application is placed, which you must retain
Online Applications: This is a relatively new process and allows you to apply for an IPO from anywhere. However, there is an eligibility criterion which you must fulfill before placing an online application. For applying online, you must be a Malaysian citizen who is at least 18 years old and have a direct CDS account. Also, the minimum order size for online application is 100 shares.
Online applications can be placed through most of the local banks. The application process differs from bank to bank and you must check with your bank for the correct way for placing an application for Bursa Malaysia IPO.
Conclusion
When you apply for an IPO it is very important to study the fundamentals of the company. Fundamental analysis can help you identify those IPO which may yield good returns. A registered investment advisor can help you in identifying fundamentally strong companies. These advisors have a team of experienced research analysts who research the markets using technical charts and provide recommendations based on the same.
Happy Investing!
