IPO (Initial Public Offering) has recently been the latest stock market trend. But what is an IPO? Before we look at the guide to apply for IPO in Malaysia, we must first understand what an IPO is.
IPO is the process of offering shares of a private corporation to the public by issuing new stocks for the first time.
In other words, it is when a privately owned company first sells its shares to the public. That is the reason why it is called an initial public offering.
Why Would A Private Company Go Public?
When companies decide to go for an IPO, the companies can raise equity capital to aid the company’s business growth.
Some other reasons are to pay off debts, raise their public profile, purchase new assets, and get funds for the company’s business operation.
As a smart investor, you would probably know how to differentiate between a good and bad IPO.
Always ask yourself, are you willing to invest your money into a company with growth potential or a lot of debt to settle?
How to apply for an IPO in Malaysia?
Guide To Apply For IPO In Malaysia
For the past two years, most IPOs were listed at a premium price on the first day. Some of the IPOs even managed to hit more than 100%. Sounds interesting to you? If it interests you, I believe most investors also feel the same.
This created a trend in the local stock exchange where investors see IPO as a great opportunity. Do not worry if you never apply for any IPO out there. After reading this guide to apply for IPO in Malaysia, perhaps it will be the first time you apply for an IPO. Let’s get started.
This article will share two methods for applying for an IPO. First of all, do you have either Maybank2u or CIMB Clicks?
If not, you should register one now.
Guide To Apply For IPO In Malaysia Via Maybank2u
- Log in to your Maybank2u account. Click on Apply and next click Investment.
- Scroll down until you see eIPO. Click Apply Now.
- Select the IPO that you wish to apply for. Complete your application and click Submit. You will redirect to the payment gateway to perform payment for your application.
- To view your e-IPO application status, go to View IPO Status.
Guide To Apply For IPO In Malaysia Via CIMB Clicks
- Log in to your CIMB Clicks. Click on Apply & Invest. Scroll down to eIPO and click Invest.
- Declare that you are not a tax resident of any foreign country NOR a US person (citizen/resident/taxpayer) for tax purposes. Then, click Submit.
- Select on the IPO that you wish to apply and click Apply.
- Click Yes if you accept the Terms & Conditions. Next, click Agree & Apply.
- Complete the application and click Submit. You will be redirected to the payment gateway to perform payment for your application.
Apply Your IPO Now
So, now do you still think IPO is difficult? We have shared two methods above on the platforms that you can apply for an IPO which are Maybank2u and CIMB Clicks.
We hope you find the guide to apply for IPO in Malaysia useful. Wish you all the best in your IPO application!