Gold Li drops 19% on ACE Market debut as investors shun small-cap listing
What's the deal? Johor-based property developer Gold Li HoldingsDealroom has a profile for this one. Try Dealroom → Bhd fell 19.2% on its first day of trading on Bursa Malaysia's ACE Market, closing at 10.5 sen against its IPO price of 13 sen per share. The stock opened weak at 12 sen and slid to an intraday low of 10 sen, with 44.19 million shares changing hands.
At the closing price, Gold Li had a market capitalisation of RM63 million. The broader market also declined, with the FBM KLCI ending 0.72% lower.
Why now? Gold Li's IPO raised over RM15.21 million from its public issue, with more than 70% earmarked to partly fund three ongoing projects and one planned development. The company develops landed homes and commercial properties in Johor and acts as its own main contractor, with 13 ongoing projects and 28 planned developments worth a combined gross development value of about RM855 million.
"This listing provides the robust financial platform needed to unlock the value of our 47.3-acre landbank and execute our planned entry into the high-rise residential market by 2027," said managing director Datuk Lee Tiau Huat.
The company plans to diversify into high-rise residential development, with a 500-unit apartment project in Muar slated for 2027 with an estimated gross development value of RM400 million.
What could go wrong? IPO applications came in just over three times the amount on offer — modest by Malaysian standards — as institutional investors and analysts shied away from the small-cap firm. The weak debut suggests limited appetite for smaller property listings in the current market environment.
An offer for sale under the IPO generated RM4.7 million for Lee and chief operating officer Lau Siew Yu, diluting their combined stake to 73.3%, mainly held through investment vehicle Setia Mega Sdn Bhd.
The signal: Gold Li's weak debut underscores the tepid investor appetite for small-cap property listings on Bursa Malaysia's ACE Market, even for mature developers with decades-long track records. With IPO applications only marginally oversubscribed and institutional investors largely absent, the listing suggests that niche, regionally focused developers face a significant valuation discount when accessing public capital — a dynamic that could deter similar Johor-based firms eyeing the market.
Read more: theedgemalaysia.com
