Evocom charts growth path amid soft debut

By the Editorial Team · Tuesday, September 29, 2026

Evocom Bhd’s shares dropped nearly 28% on their Bursa Malaysia debut, closing at 13 sen compared to the 18 sen offer price, marking the weakest IPO performance on the exchange this year. Despite this setback, the company plans to invest in technology and expand its logistics operations domestically and internationally, aiming to capitalize on the growing eCommerce sector in Malaysia.

Evocom Bhd experienced a challenging start to its public trading on Bursa Malaysia, with its share price falling nearly 28% on its debut day, marking the weakest initial public offering (IPO) debut on the exchange this year. The company’s shares closed at 13 sen, down from the initial offer price of 18 sen.

Specializing in network support services related to last-mile delivery and transshipment, Evocom is heavily dependent on SPX Express, its main revenue source. SPX Express, an in-house logistics provider owned by Sea Ltd, the parent company of Shopee, accounts for more than 80% of Evocom’s revenue, presenting a concentration risk for the company. In terms of profitability, Evocom has seen its profit before tax margin tighten from 5.1% in the financial year 2022 to 2.57% in the period ending March 31, 2026.

Despite the disappointing market debut, CEO Ian Tan remains optimistic about the company’s growth prospects. Speaking at the listing ceremony, Tan highlighted the expanding eCommerce and logistics sectors in Malaysia, noting the industry’s value growth from RM1.4 billion in 2022 to RM1.5 billion in 2025, with projections reaching RM1.7 billion by 2028. He emphasized the importance of technology in managing Evocom’s sizeable operation of approximately 2,500 delivery riders.

Evocom raised RM20.5 million from its IPO, with the retail portion oversubscribed by 3.6 times. The group plans to allocate RM7.2 million for working capital to support flexible staffing services, RM3 million toward enhancing proprietary technology applications—including its EVOSHIFT and CLiPs platforms for route planning, workforce management, and gig-worker upskilling—and another RM3 million to expand its air-freight transshipment business. Additional funds will be used to establish a new headquarters in Nilai, Negri Sembilan, with a soft launch slated for October 14 and full operational capacity expected by the first quarter of 2027.

Evocom is also pursuing growth beyond domestic logistics by leveraging its Chinese partner network to handle air-freight routes from China to Australia and the Middle East. Moreover, the company plans to recruit retired military personnel under the Perhebat program to maintain a fully local workforce, tapping into a candidate pool of around 5,000.

Market sentiment towards Evocom’s listing reflects broader IPO performance trends on Bursa Malaysia’s ACE Market this month, where four out of five new stocks closed below their initial offer prices. Other recent IPOs with first-day declines include GTA Holdings Bhd, United Asiapac Energy Bhd, Butterfield FB Bhd, and January-listed One Gasmaster Holdings Bhd, which experienced a 20% drop on debut.

While Evocom faces near-term challenges, particularly due to its revenue concentration, company leadership is focusing on technological enhancements and sector growth to drive its longer-term expansion.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.