KUALA LUMPUR: SkyeChip Bhd, which was listed on Wednesday, has emerged as the strongest performing initial public offering (IPO) on Bursa Malaysia's Main Market so far this year.
The stock surged 300 per cent on its debut amid strong investor appetite, driven by supply scarcity, enthusiasm surrounding artificial intelligence (AI), and the company's robust earnings prospects, an analyst said.
The Penang-based integrated circuit (IC) design company debuted on the Main Market at RM3.50, representing a gain of RM2.62 or 297.73 per cent from its IPO price of 88 sen, and emerged as the most active on the market.
A total of 23.3 million shares changed hands during the early session, valuing SkyeChip at a market capitalisation of RM4.7 billion, significantly above its initial expected valuation of about RM1.58 billion.
The stock touched an intraday high of RM3.80 and a low of RM2.21.
It closed 151.14 per cent higher, or RM1.33 above its IPO price, at RM2.21, with trading volume of 292.88 million shares, valuing the company at a market capitalisation of RM3.96 billion.
SkyeChip is the 26th company to debut on Bursa Malaysia this year. While Bursa Malaysia has not stated a target number of IPOs for 2026, the exchange is aiming for a total IPO market capitalisation of RM28 billion, higher than the RM27.4 billion recorded in 2025.
Bursa Malaysia also recorded strong performance on the ACE Market from Kee Ming Group Bhd, which became the first IPO in 2026 to more than double on its debut in February.
EXPOSURE TO AI GROWTH
Tradeview Capital fund manager Neoh Jia Man told Business Times that, as one of the few IC design companies listed on Bursa Malaysia, SkyeChip provides investors with a rare avenue to gain exposure to the AI-driven growth theme within the domestic equity market.
"In addition, there was no offer for sale by existing shareholders and no Investment, Trade and Industry Ministry placement, which effectively reduced selling pressure on the debut day.
"Furthermore, the company's strong quarterly earnings reported ahead of the IPO reinforced investors' confidence in the stock," he said.
SkyeChip posted a net profit of RM31.47 million for the fourth quarter ended March 31, 2026, on revenue of RM58.88 million.
The company said 58 per cent of its revenue was derived from sales of silicon intellectual property (IP), while the remaining 42 per cent came from sales of custom application-specific integrated circuits.
For the full financial year, net profit rose 34.9 per cent to RM48.53 million from RM35.95 million a year earlier.
Meanwhile, SkyeChip's revenue increased 29.7 per cent to RM155 million, compared with RM119.5 million in the corresponding period ended March 31, 2025.
On May 11, SkyeChip was among three local companies to receive offer letters under a strategic collaboration between the government and British semiconductor company ARM Holdings.
The other recipients were GreatAsic Technology Sdn Bhd and Oppstar Technology Sdn Bhd, a subsidiary of Oppstar Bhd.
Neoh said the strong showing by SkyeChip will have a positive impact on investor appetite for subsequent IPOs, particularly those related to semiconductor, data centre, and AI themes.
He said broader market conditions would also play an important role in determining the performance of future IPO debuts.
"Based on our observations, SkyeChip is indeed the strongest IPO performer so far this year compared with other IPOs year-to-date.
"Based purely on first-day closing price performance relative to its listing price, it is well ahead of other notable contenders, including Kee Ming and BIMOffice Group Bhd," Neoh said.
So far, 26 companies have been listed on Bursa Malaysia, comprising four on the Main Market, 16 on the Ace Market, and six on the LEAP Market.
Upcoming IPOs on Bursa Malaysia include EI Power Bhd, which is scheduled to list on the Ace Market on May 21, as well as Bus Cap Bhd and MM Computer Systems Bhd, both slated for Ace Market listings in June.