KUALA LUMPUR: Malaysia Digital Economy Corporation (MDEC), which has supported the listing journeys of 29 Bursa Malaysia-listed tech companies, aims to prepare at least 30 companies to be initial public offering (IPO)-ready by 2028.
MDEC chief executive officer Anuar Fariz Fadzil said these Malaysia Digital (MD) status companies were selected from about 100 participants in its TechIPO Insight programmes here last year and in Penang this year.
"Sixty MD-status companies took part in TechIPO Insight KL 2024, with more than 20 assessed as likely to be IPO-ready within the next two years. At this year's Penang edition, at least 10 of the 40 firms were expected to be IPO-ready by 2028," he told Business Times.
MDEC has facilitated a wide range of listed tech companies to navigate their pre- and post-IPO stages, from ACE Market player Daythree Digital Bhd to Main Market-listed Vitrox Bhd.
The pipeline spans sectors including semiconductor, cybersecurity, broadband infrastructure, green technology, financial software, e-government and global business services.
Among the 29 companies, Sancy Bhd, a healthcare information technology company, is preparing to graduate from the LEAP Market to a full listing.
Collectively, these firms had a combined market capitalisation of RM39.7 billion as of July 1, according to MDEC's TechIPO Readiness report.
Anuar said MDEC is working to broaden access to the stock market for MD-status companies, supporting scale-ups of all sizes rather than focusing only on unicorns, which are firms valued at over US$1 billion (about RM4.21 billion).
"The aim is to widen the funnel. We want high-potential firms, whether worth RM100 million or several billion, to see Bursa as a natural venue for growth capital. It's not just about unicorns, it's about sustainable growth with depth and diversity."
MD is a national initiative led by MDEC, an agency under the Digital Ministry, and strategically designed to accelerate the growth of the country's digital economy.
Positioned as a key catalyst for innovation, MD aims to sharpen Malaysia's competitive edge and signals the government's unwavering commitment to cultivating a vibrant and resilient digital ecosystem.
MD companies receive a suite of incentives and tailored support engineered to help them accelerate their journey from promising venture to market leader.
As of end-August, more than 6,500 companies had been granted MD status.
Anuar said MDEC's IPO track includes cornerstone investor facilitation, amplification, founder and IPO readiness programmes, alternative and growth financing and catalytic grants.
"Our role is to make sure good ideas don't stall because of capital gaps. From various stages of equity and debt funding, we facilitate Malaysian tech companies to find the right financial instrument at the right time.
"Listing is not the finish line, it's a growth enabler. With the right founder amplification and research coverage, we can help mid-cap tech firms for market access expansion, fundraising, talent development and innovation," he said.
Looking ahead, Anuar said MDEC will continue refining its TechIPO roadmap and investor facilitation events while encouraging more regional funds to view Malaysia as a source of quality listings.
"Our message is that Bursa isn't just for giants. With the right ecosystem, Malaysia can nurture a steady flow of listed tech champions that create jobs, attract capital and strengthen the digital economy," he added.