Applying for an IPO in Malaysia
An Initial Public Offering, more commonly known as an IPO is when a private company is listed on the stock exchange and sells its shares to the public for the first time. They are usually met with much fanfare and anticipation.
To put it simply, there are 3 ways for Malaysians to apply for an IPO:
1) Manual via application forms;
2) ATMs; and
3) eIPO via online banking
I have never done number 1 and I don’t think anyone is doing it this way anymore. Maybe the older generation of stock investors used to do this. Applying via the ATM was the easiest method up until a few years ago. Now, I think the go-to and most convenient way to apply for an IPO in Malaysia is through online banking.
Most local banks offer this service and I myself use Maybank. I’ll be giving you a step-by-step guide below using Maybank because it can get a little complicated.
eIPO Application via Maybank2U
Things to Note When Applying for an IPO in Malaysia.
It goes without saying but you’ll first want to make sure that you have a sufficient amount of money in your account before applying. Take note that some banks require you to maintain a minimum balance.
Fees. I was charged RM1 by the bank as a processing fee.
Only apply once. Duplicate applications are not allowed.
Take note of the closing date and apply before 5pm that day.
Take care to input the correct CDS number when applying.
Only Direct CDS accounts can apply for IPO, nominee accounts unfortunately cannot.
CTOS DIGITAL BERHAD IPO
If you squint hard enough at the image earlier, you can make out HAILY GROUP BHD and CTOS DIGITAL BHD. And as you might have guessed, I’m actually applying for CTOS this time around. I’ve tried applying for a few companies prior to this and never got any shares. So I’m not keeping my hopes up.
Keeping this article short and simple for those of you who want to apply for IPOs in Malaysia. Hope this helped and thank you for reading!
I am a certified financial planner with the Financial Planning Association of Malaysia, a passionate investor looking for financial independence as well as hoping to educate Malaysians on financial literacy.
Aiming to become financially independent by 35 years old, I enjoy living a frugal lifestyle (with the occasional lavish spending) while meticulously adding to my portfolio of dividend growth stocks. I’m here to show you what real investing is really like, and that anyone can invest.
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