Aquawalk Debuts on ACE Market Amid Expansion Plans
Aquawalk Group Bhd officially made its debut on the ACE Market of Bursa Malaysia today, opening at 30 sen, which was one sen below its Initial Public Offering (IPO) price of 31 sen, with 26.49 million shares changing hands.
Despite the slightly lower opening price, the public portion of the IPO demonstrated robust investor confidence, achieving an oversubscription rate of 6.22 times.
Bumiputera applications exceeded their allocation by 5.68 times and the non-Bumiputera portion by 6.77 times.
Datuk Simon Foong, the Group executive chairman, acknowledged the initial market perception, suggesting that the absence of a directly comparable listed company on Bursa Malaysia might have influenced the stock’s starting valuation.
He expressed optimism that the market would eventually recognize the group’s true intrinsic value, stating, “We hope that, given time, the market will realise the valuation we deserve.”
Crucially, he emphasized that the successful listing provides Aquawalk Group with the necessary capital and platform to significantly accelerate its comprehensive expansion plans and pursue future strategic opportunities with greater assertiveness.
The immediate focus for expansion involves developing a major new oceanarium in Kota Kinabalu, Sabah, and an aquarium in Surabaya, Indonesia.
Concurrently, the group is committed to enhancing its flagship facility, Aquaria KLCC, with a new and highly anticipated rockhopper penguin exhibit, which is currently slated for completion by the middle of 2026.
This showcases the group’s commitment to continuous improvement and diversification within the leisure sector.
Strategic Visitor Mix and Future Revenue Growth
Executive director and group chief executive officer Daryl Foong highlighted the Aquawalk Group’s consistently healthy and well-balanced mix of both local and international visitors across its portfolio of aquariums.
He noted that the Phuket facility, in particular, has historically maintained strong international visitorship, which typically hovers around 50 per cent of total attendance.
During peak tourism seasons, this international visitor ratio frequently rises further, reaching figures between 60 to 65 per cent, underscoring the appeal of the Aquawalk brand to global tourists.
Furthermore, he confirmed that the flagship Aquaria KLCC continues to demonstrate an upward trajectory in visitorship, a positive trend significantly supported by ongoing incentives and dedicated tourism promotion efforts initiated by the Malaysian government.
When addressing the potential for future ticket price adjustments, Daryl Foong indicated that any such increases would likely be considered only following the successful completion of a new signature tank at Aquaria KLCC.
The introduction of a major new attraction provides a clear, justifiable basis for a price revision, linking increased value to increased cost.
He stressed that when the group reviews its ticket prices, it adopts a meticulous benchmarking approach, comparing its offerings against both international market standards and comparable world-class facilities.
These reference points include major regional attractions such as the Singapore Oceanarium and Hong Kong Ocean Park, ensuring the group’s focus remains squarely on delivering strong value for money.
This value is measured whether by educational content, enrichment programs, or the overall immersive visitor experience provided by the Aquawalk facilities.
Capital Allocation and Long-Term Development Pipeline
The strategic utilization of the proceeds generated from the IPO will be pivotal to realizing the Aquawalk Group’s long-term vision, with funds being channelled into several high-priority capital expenditure projects.
These key initiatives include the development of the aforementioned rockhopper penguin tank at Aquaria KLCC, comprehensive renovation and essential upgrade works scheduled for both the Phuket and Kuala Lumpur facilities.
They also include the funding for the development of entirely new core attractions in Surabaya, Indonesia, and Kota Kinabalu, Sabah.
The timeline for these projects is clearly defined, with the highly anticipated penguin tank expected to be finalized in the second half of 2026.
Looking further ahead, the new Surabaya and Kota Kinabalu aquariums are major undertakings and are currently targeted for completion in 2027 and 2028, respectively.
This establishes a robust development pipeline for the Aquawalk Group over the next three years.
This phased expansion, leveraging the capital raised through the listing, is designed to increase the group’s geographical footprint, diversify its revenue streams, and enhance its resilience against local tourism fluctuations by spreading risk across multiple regional markets.
The group’s aggressive expansion, particularly into Indonesia and Sabah, positions it to capitalize on the increasing regional demand for high-quality, education-focused leisure attractions, cementing its role as a key player in the ASEAN tourism and entertainment landscape.
Analysis of Regional Tourism Sector Dynamics and Investment Thesis
The listing of Aquawalk Group, despite the marginal debut discount to its IPO price, is fundamentally a bullish signal for the specialized, high-barrier Aquawalk leisure segment across the ASEAN region.
It aligns the company as a key proxy for the post-pandemic tourism recovery and the strategic “Visit Malaysia 2026” campaign.
The initial softness is largely attributable to the self-identified lack of direct Bursa-listed peers, forcing analysts to rely on comparisons with large, diversified regional conglomerates like Genting or resort operators.
These typically trade at different valuation multiples due to non-core revenue contributions.
However, the 6.22x oversubscription rate, particularly the high institutional demand reflected in the placement, underscores confidence in the long-term growth thesis, which is underpinned by the significant capital expenditure plan.
The planned expansions into Kota Kinabalu (Sabah, Malaysia) and Surabaya (Java, Indonesia) are strategically de-risking moves.
The Kota Kinabalu development directly taps into the high-value ecotourism market of Sabah, complementing existing natural attractions and catering to higher-spending international tourists.
Meanwhile, the Surabaya project, located in Indonesia’s second-largest city and a major commercial hub, targets a massive, underserved domestic middle-class market, providing a resilient, less cyclical revenue stream compared to international arrivals.
This geographical and demographic diversification is expected to lower visitor concentration risk, which is currently high at the flagship Aquaria KLCC.
The utilization of 78.6% of IPO proceeds for capital expenditure is a high-growth metric, indicating a strong commitment to expanding capacity and enhancing asset quality (e.g., the new penguin exhibit).
This directly justifies future ticket price revisions and supports a projected double-digit growth rate in the short to medium term, making Aquawalk a compelling growth stock in the regional tourism Investment sector.
