Evocom debuts 27.8% below IPO price as weak demand triggers sell-off
Evocom Bhd opened 15 sen below its RM18-sen IPO price and closed 27.8% lower at 13 sen, valuing the logistics and workforce solutions provider at RM59 million after raising RM20.5 million from its listing.
Source: Free Malaysia Today · September 28, 2026 at 5:02 PM · AI-assisted report
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BURSA MALAYSIA, 29 SEPTEMBER 2026 —
Evocom Bhd opened 15 sen below its RM18-sen IPO price and closed 27.8% lower at 13 sen, valuing the logistics and workforce solutions provider at RM59 million after raising RM20.5 million from its listing.
Market Impact
The stock’s intraday low of 12.5 sen marked a 30.5% drop from its offering price, while 71.8 million shares traded—making it the third-most-active stock on Bursa Malaysia’s ACE Market.
The weak debut reflected subdued investor appetite, with the public portion of the IPO oversubscribed just 3.6 times while a portion of the offering was undersubscribed, requiring reallocation to other investor categories. According to Bernama, the lack of demand contrasted with Evocom’s positioning as a key player in Malaysia’s booming e-commerce logistics sector, where it supplies manpower to platforms including Shopee’s in-house delivery arm, SPX Express, which accounts for over 80% of its revenue.
Evocom’s IPO proceeds will fund its cash-intensive operations, with more than one-third allocated to working capital for its staffing services. Another 30% will support technology development and expand its air freight transhipment business, while 7% each will go toward establishing a new headquarters in Nilai, Negeri Sembilan, and general working capital. The remainder will cover listing expenses.
Founder and CEO Ian Tan sold 22 million existing shares, cashing out RM3.96 million. The company operates as a workforce solutions provider for online commerce platforms, offering last-mile delivery, transhipment, and parcel shipment services. It also manages two of Lazada’s distribution hubs and secured a licence last year to provide international inbound courier services.
NewParadigm Securities served as the IPO’s principal adviser, sponsor, sole underwriter, and placement agent. The listing follows a broader trend of weaker debuts in Malaysia’s ACE Market, where smaller issuers have faced challenges in attracting retail investors amid cautious market sentiment.
Analysts will now watch Evocom’s ability to convert its IPO proceeds into revenue growth, particularly as its business remains heavily reliant on SPX Express. The company’s market capitalisation of RM59 million—less than half its IPO valuation—highlights the need for stronger investor confidence to stabilise its stock price.
Related: Evocom Bhd · Ian Tan · Bursa Malaysia