How to apply for a Malaysian IPO

Applying for an IPO in Malaysia is simpler than most people expect, but the mechanics matter, especially where your application actually goes.

What you need first

• A CDS account (Central Depository System), opened through any stockbroker. This is where your shares land if you are allotted.
• A trading account with a broker, so you can actually sell (or buy more) once it lists.
• The cash. Applications are paid upfront, in full.

Where to apply

• Online banking, the most common route. Most major banks list open IPOs under "eIPO" or investment services.
• Tricor Investor Services (the main issuing house) via its online portal.
• ATMs of participating banks. Old-school, but it still works.

The tranches

A retail application goes into the public balloting tranche. Half of the public offer is typically reserved for Bumiputera applicants, who apply into their own tranche with its own ballot. Separately, institutions take private placements that never touch the public ballot, which is why the retail portion can be tiny even in a big IPO.

After you apply

Your money is held while applications are balloted. If you are allotted, shares appear in your CDS account before listing day. If not, the full amount is refunded, typically within a few days after balloting.