PR frenzy, poor fundamentals: Disappointing IPO darlings
Behind the scenes, public relations consultants and investment advisors played pivotal roles organising media briefings, analyst meetings and investor briefings to generate interest and drive early demand.
However, as the dust settles, some of these companies have fallen short of their promises, with share prices slipping below IPO levels despite the initial fanfare.
Here are three companies that illustrate the disconnect between pre-listing optimism and post-listing realities:
Alpha IVF Group Bhd
•Recent Price: 28 sen (as of June 6)
Alpha IVF, a fertility services provider, made its debut on Bursa Malaysia with a compelling narrative centred around expanding fertility awareness and clinical capabilities.
The company positioned itself as a beacon of hope for couples struggling to conceive, backed by cutting-edge technologies and a regional footprint.
Public relations consultants heavily promoted the IPO, emphasising emotional branding - stories of successful IVF journeys, warm imagery of smiling babies - and reassuring interviews with founders and doctors.
Investor briefings were held, reinforcing the company's regional growth story.
The IPO was oversubscribed, and the stock saw a slight uptick upon listing.
However, the honeymoon phase was short-lived. Analysts began to question the valuation multiples, especially given the thin margins and rising operational costs of running fertility centres.
The company's expansion plans, initially perceived as bold, began to look like expensive bets in a niche and price-sensitive market.
Despite the promotional efforts, Alpha IVF's share price gradually declined, slipping below its IPO price and staying there.
Notably, the IPO price of RM0.32 corresponded to a price-to-earnings (P/E) ratio of 21.92x, based on a net profit of RM54.79 million and earnings per share (EPS) of 1.46 sen for the financial year ended May 31, 2023.
This valuation was higher than the industry's average P/E ratio, raising concerns about the company's valuation amidst the optimism.
CPE Technology Bhd
•IPO Price: RM1.07
•Recent Price: 71 sen (as of June 6)
CPE's entry into Bursa was anything but quiet.
As a precision engineering company with clients in the semiconductor, life sciences, and industrial automation sectors, it was touted as a proxy for Malaysia's high-tech ambitions.
The IPO narrative leaned heavily on its global supply chain connections, particularly its exports to the US, Europe and China.
In the weeks leading up to its listing, CPE's name was everywhere.
PR consultants rolled out a carefully staged campaign: glossy investor kits were circulated, media interviews were arranged with top executives, and photos of high-tech assembly lines flooded financial pages.
There were even organised tours for analysts and key fund managers to CPE's Johor-based facilities, complete with safety helmets, walkthroughs, and sales pitch presentations over coffee.
The message was clear: CPE was not just another component maker - it was a growth story in a fast-evolving tech ecosystem.
Investors initially responded with enthusiasm. The IPO was oversubscribed, and there was buzz about CPE being well-positioned to ride the next wave of industrial demand.
But reality, as it often does, proved more complicated.
Just a few quarters in, cracks began to appear. Order flows from major clients slowed as the global tech sector cooled. Margins came under pressure, not least due to rising raw material costs and a strong US dollar.
Earnings missed early projections, and suddenly, the glow around CPE started to fade. The same analysts who had attended the factory tours began to revise their outlooks.
Despite the polished communications campaign and well-managed listing strategy, CPE's share price drifted below its IPO level.
The company had a credible story - but not enough momentum to keep the market convinced.
DXN Holdings Bhd
•IPO Price: 70 sen
•Recent Price: 50 sen (as of June 6)
DXN's return to the stock market after years in private hands was framed as a rebirth.
PR consultants spoke of a "new chapter" for the direct-selling giant, with aggressive outreach to media and investor groups. Yet, cracks began to appear when earnings underwhelmed and overseas sales growth slowed.
Despite the well-orchestrated relisting campaign, investors began to question whether DXN's golden era was behind it.
Conclusion: Hype Fades, Fundamentals Remain
Industry observers said new IPOs often arrive on a wave of excitement, backed by slick presentations, aggressive PR campaigns, and promises of untapped potential.
But investors must learn to separate story from substance. Just because a stock is trending or being heavily marketed doesn't mean it's a good buy.
PR blitzes can create temporary buzz, but they can't sustain valuations if earnings disappoint and growth stalls.
The observers said the message is clear: don't get carried away by headlines or hype, and stick to fundamentals, scrutinise the financials and invest with discipline.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
an hour ago
- Malaysian Reserve
Ba0Ba0 and OceanBase Forge Partnership to Expand Intelligent Automation Through Combined AI and Database Expertise
SINGAPORE, Aug. 14, 2025 /PRNewswire/ — Ba0Ba0, a Singapore-based AI company with a zero token, zero licensing cost model and a local LLM CPU-first architecture, today announced a strategic partnership with OceanBase to co-develop and expand AI automation solutions across Singapore and other ASEAN markets. The partnership will merge Ba0Ba0's affordable, locally deployable AI capabilities with OceanBase's industry-leading database technology, enabling enterprises across banking, healthcare, retail, and other sectors to accelerate digital transformation with unmatched efficiency and cost control. Through this partnership, Ba0Ba0 will integrate OceanBase's AI-ready, multi-cloud distributed database capabilities into its AI automation solutions, delivering higher efficiency, reliability, and scalability for enterprise backends. This integration ensures secure, high-performance deployments while eliminating the usage-based fees and licensing costs that have historically limited AI adoption in many industries. OceanBase's built-in vector capabilities enable AI development directly within SQL, simplifying the AI stack and allowing seamless hybrid searches across structured, semi-structured, and unstructured data — all while integrating OLTP, OLAP, and AI workloads in a single database. These innovations unlock modernized AI applications such as intelligent recommendations, AI-powered conversational systems through Retrieval-Augmented Generation (RAG), and enterprise-level AI agents. OceanBase's advanced AI database capabilities have been leveraged by customers across diverse scenarios, including a hotel image retrieval and display system developed by Group, and Lalamove's advanced solutions such as a loss-prevention code recognition system and an AI assistant for data warehouse inquiry. 'Our mission has always been to make AI affordable, accessible, and impactful for every industry, regardless of size or budget,' said Jesslyn Wong, Founder of Ba0Ba0 AI. 'By partnering with OceanBase, we are combining leading-edge AI automation with world-class database technology to empower businesses across banking, healthcare, retail, and beyond. This December, we are taking our vision beyond Earth — with the Ba0Ba0 AI LLM set to be deployed aboard a space cubesat satellite as part of the Tristar mission in collaboration with the Russian space agency — marking a milestone in making AI truly universal.' Hong-Chia How, General Manager of the APAC market at OceanBase. remarked, 'The emergence of the new AI era, accompanied by exponential growth in data warehouses, presents unprecedented opportunities alongside significant challenges in data storage, management, and analysis. OceanBase is evolving from an integrated database into a comprehensive, AI-ready data platform, with AI as a core strategic pillar of our future. By strengthening our Data x AI capabilities, we aim to unlock real-world impact from the latest AI innovations. 'We are excited to join hands with Ba0Ba0, bringing our AI database expertise to accelerate AI transformation across Southeast Asia. We invite organizations exploring AI use cases , as well as SaaS providers seeking to transform their applications, to partner with us on this journey.' added How. Ba0Ba0 stems from charity roots and remains privately owned for the benefit of the masses, focusing on delivering enterprise-grade AI automation without hidden costs. Its CPU-first, locally deployable large language model ensures data sovereignty, scalability, and zero token/zero licensing cost, enabling organizations to adopt AI without financial or operational lock-in. Operating in over 170 availability zones across more than 50 geographic regions on major global cloud platforms, including Amazon Web Services, Google Cloud, Alibaba Cloud, and Tencent Cloud, OceanBase has successfully assisted over 2,000 customers worldwide in upgrading their database systems. About Ba0Ba0 Ba0Ba0 is a Singapore-based AI company dedicated to making advanced AI automation accessible to all. Built on charity-inspired values, Ba0Ba0 remains privately owned to safeguard its mission of serving the public good. Its flagship technology features a zero token, zero licensing cost model and a local LLM CPU-first architecture, enabling secure, scalable, and cost-efficient AI deployments without reliance on expensive cloud GPU infrastructure. Ba0Ba0 empowers industries including banking, healthcare, and retail to harness AI automation while retaining full control of their data and costs. About OceanBase OceanBase is a distributed database launched in 2010. It provides strong data consistency, high availability, high performance, cost efficiency, elastic scalability, and compatibility with mainstream relational databases. It handles transactional, analytical, and AI workloads through a unified data engine, enabling mission-critical applications and real-time analytics. To learn more, please visit: Media Contacts Ba0Ba0 AIMedia RelationsEmail: press@
The Star
an hour ago
- The Star
Japanese venture seeks to 'condense' hot springs for export
TOKYO: Japan's famous "onsen" hot springs were long considered unexportable, until an idea struck Naoki Mita one day: what if he could condense them like espresso coffee? Mita's Tokyo-based venture firm, Le Furo, has invented a technology it calls "craft onsen" -- whereby hot spring ingredients are extracted and filtered into an ultra-high concentration. Le Furo now seeks to use that patented technology to export Japan's hot springs overseas, with a view toward opening several onsen facilities in the Gulf region in 2026. Transporting hot springs overseas long seemed logistically impossible because of the sheer volume of water involved, as well as their susceptibility to germs. But with Le Furo's invention, "just like you extract coffee as espresso, we grind the mineral resources to fine, sand-like powders," CEO Naoki Mita told AFP. The entrepreneur says many commercially available "onsen powders" are synthetic and put an emphasis on mimicking the relaxing colour and scent, and don't necessarily contain the necessary ingredients. Only after solid metals such as iron, magnesium and zinc dissolve into water does it become possible to chemically resemble onsen and recreate the therapeutic effect, Mita said. Le Furo's technology sticks to the natural soil and minerals of hot spring sources, and uses a special method to make them soluble in water. Its "Craft Onsen" concentrate comes in bottles or small tanks, which can then be distributed and poured into water in other countries to feel like the real thing. Onsens -- bath houses where patrons relax naked together in hot spring water of various temperatures -- are a major domestic industry in Japan beloved by both locals and tourists. As of 2021, Japan was home to 28,000 confirmed hot spring sources, according to the environment ministry. Le Furo is setting its sights particularly on countries like the UAE, Oman and Saudi Arabia where "water is considered a more precious resource than oil", Mita says. "Here in Japan, we have this culture of soaking ourselves in a good, long bath to attain better health -- that's the kind of story that I believe (other countries) will show great interest in," Mita said. - AFP
The Star
2 hours ago
- The Star
Apple plots expansion into AI robots, home security and smart displays
Apple Inc is plotting its artificial intelligence comeback with an ambitious slate of new devices, including robots, a lifelike version of Siri, a smart speaker with a display and home-security cameras. A tabletop robot that serves as a virtual companion, targeted for 2027, is the centerpiece of the AI strategy, according to people with knowledge of the matter. The smart speaker with a display, meanwhile, is slated to arrive next year, part of a push into entry-level smart-home products. Home security is seen as another big growth opportunity. New cameras will anchor an Apple security system that can automate household functions. The approach should help make Apple's product ecosystem stickier with consumers, said the people, who asked not to be identified because the initiatives haven't been announced. Apple shares climbed to a session high on Wednesday after Bloomberg News reported on the plans. The stock was up nearly 2% to US$233.70 (RM980.96) as of 2.17pm in New York. It's all part of an effort to restore Apple's mojo. Its most recent moon-shot project, the Vision Pro headset, remains a sales flop, and the design of its bestselling devices has remained largely unchanged for years. At the same time, Apple has come under fire for missing the generative AI revolution. And OpenAI may even threaten the company's home turf by developing new AI-driven devices with the help of former Apple design chief Jony Ive. Though Apple is still in the early stages of turning around its AI software, executives see the pipeline of hardware as a key piece of its resurgence – helping it challenge Samsung Electronics Co, Meta Platforms Inc and others in new categories. A spokesperson for Cupertino, California-based Apple declined to comment. Because the products haven't been announced, the company's plans could still change or be scrapped. Many of the initiatives and their timelines rely on Apple's continued progress in AI-powered software. Chief executive officer Tim Cook told employees in an all-hands meeting this month that Apple must win in AI and hinted at the upcoming devices. "The product pipeline – which I can't talk about – it's amazing, guys. It's amazing,' Cook said. "Some of it you'll see soon. Some of it will come later. But there's a lot to see.' Beyond the home devices, Apple is preparing thinner and redesigned iPhones for release this year. And further out, it aims to introduce smart glasses, a foldable phone, a 20-year anniversary iPhone and a revamped headset dubbed N100. It's also planning a large foldable device that melds a MacBook and an iPad. Apple is looking to boost sales after years of slowing growth for its flagship products. It also nixed some expansions into new areas, like self-driving cars, adding pressure to find other sources of revenue. Moreover, the new initiatives will help rebut the idea that the company is no longer innovating like it used to. Bloomberg News first reported last year that Apple was moving forward with a tabletop robotics project, code-named J595, and developing a new smart-home strategy. But now a clearer picture is forming of its push into that market – and what it means for its AI ambitions. Robots The tabletop robot resembles an iPad mounted on a movable limb that can swivel and reposition itself to follow users in a room. Like a human head, it can turn toward a person who is speaking or summoning it, and even seek to draw the attention of someone not facing it. The hope is to bring AI to life in ways that other hardware makers have yet to do. Apple imagines customers placing it on a desk or kitchen counter and using it to get work done, consume media and manage their day. FaceTime calls will also be a key function of the device. During videoconferencing, the display will be able to shift to lock on to people around a room. Apple is testing a feature that turns an iPhone screen into a joystick, letting users move around the robot to show different people or items in a room during video calls. But the hallmark of the device is an entirely new version of the Siri voice assistant that can inject itself into conversations between multiple people. It will be able to engage with users throughout the day and more easily recall information. The idea is for the device to act like a person in a room. It could interrupt a conversation between friends about dinner plans, say, and suggest nearby restaurants or relevant recipes. It's also being designed to engage in back-and-forth discussions for things like planning a trip or getting tasks done – similar to OpenAI's voice mode. Apple is planning to put Siri at the center of the device operating system and give it a visual personality to make it feel lifelike. The approach, dubbed Bubbles, is vaguely reminiscent of Clippy, an animated paper clip from the 1990s that served as a virtual assistant in Microsoft Office. Apple has tested making Siri look like an animated version of the Finder logo, the iconic smiley face representing the Mac's file management system. A final decision on its appearance hasn't been made, with designers considering ideas that veer closer to Memoji, the playful characters that represent Apple user accounts. Device prototypes use a roughly 7in horizontal display, approaching the size of an iPad mini. The motorised arm can extend the display away from the base roughly half a foot in any direction. Some people familiar with the product call it the "Pixar Lamp', referring to the animated film company's famous logo. Apple has previously disclosed some research in this area: It published a paper in January detailing a light fixture that uses robotics to move around. Apple has multiple teams across its AI, hardware, software and interface design groups tackling the project. The work is being led in part by Kevin Lynch, who previously oversaw a push into smart watch software and cars. The technology giant is developing several other robots. It has teams exploring a mobile bot with wheels – something akin to Inc.'s Astro – and has loosely discussed humanoid models. Apple has a group actively developing a large mechanical arm for use in manufacturing facilities or handling tasks in the back of retail stores, a move that could potentially replace some staff. Such a robot, code-named T1333, remains several years away. Charismatic The smart-home push includes a standalone display poised to launch by the middle of next year. That device, code-named J490, is a stripped-down variant of the robot, lacking the arm and conversational Siri – at least to start. It will still have home control, music playback, note taking, web browsing and videoconferencing. It may also include the new Siri visual interface. Both the smart display and tabletop robot will run a new operating system dubbed Charismatic, which is designed to be used by multiple people. The interface largely centers on clock faces and widgets – small software features that are typically dedicated to specific tasks. Charismatic, which was previously known as Pebble and Rock earlier in development, blends the approach of the Apple TV and Apple Watch operating systems. It offers features like multiuser modes and clock-face themes, such as one based on Snoopy, the beagle from the Peanuts comic strip. The devices are meant to be easily shared: They include a front-facing camera that can scan users' faces as they walk toward it and then automatically change the layout, features and content to the preferences of that person. Some versions of the software use circular app icons and feature a hexagonal grid of apps. Apple is planning to include many of its core apps, including the calendar, camera, music, reminders and notes software. But the interface will be heavily reliant on voice interaction and widgets, rather than jumping in and out of apps. Though the device will have a touch screen, the primary input method will be Siri and an upcoming upgrade to a feature dubbed App Intents. That software lets users precisely control the interface and applications via voice. The hardware itself looks similar to a Google Nest Hub but is shaped like a square, with thin black or white bezels and rounded corners. The non-robotic 7-inch display sits on a half-dome-shaped base, which includes some of the electronics and is perforated around the bottom edges for speakers and microphones. It can also be mounted on a wall. The launch will mark the first time Apple is making a serious push into the smart home and comes nearly a decade after Amazon and Alphabet Inc.'s Google started shipping smart speakers with screens. The home is a critical space for Apple to target, especially as more users consume content from the living room and automate household functions. Apple has long had a strong foothold in mobile devices and quickly became a player in the automotive industry via CarPlay – but that success hasn't followed into the smart home. Though the company launched HomeKit for controlling third-party devices in 2014, it has had limited success with its own HomePod speakers. Linwood and Glenwood Core to the new home devices – and current products like iPhones and iPads – is an overhaul to the underpinnings of Siri. Engineers are working on a version code-named Linwood with an entirely new brain built around large language models – the foundation of generative AI. The goal is to tap into personal data to fulfill queries, an ability that was delayed due to hiccups with the current version. That new software, known internally as LLM Siri, is planned for release as early as next spring, Bloomberg News has reported. But work is going even further: Apple is preparing a visually redesigned assistant for iPhones and iPads that will also debut as early as next year. Craig Federighi, senior vice president of software engineering, hinted at a bigger-than-anticipated overhaul in an internal meeting with employees this month. "The work we've done on this end-to-end revamp of Siri has given us the results we needed,' he said, adding that "this has put us in a position to not just deliver what we announced, but to deliver a much bigger upgrade than we envisioned.' He said that "there is no project people are taking more seriously.' Linwood is based on technology developed by the Apple Foundation Models team, but the company has a competing project dubbed Glenwood as well that would power Siri with outside technology. A final decision hasn't been made on which models will be used, but Apple has been testing Anthropic PBC's Claude for this purpose. Mike Rockwell, the former Vision Pro chief who was put in charge of Siri earlier this year, is overseeing both the Linwood and Glenwood efforts. During development of the tabletop robot, Apple engineers have made heavy use of ChatGPT and Google Gemini to build and test features. Within Apple's AI and Siri teams as a whole, software developers are increasingly using third-party systems as part of their development process. Ring competitor Apple is working on a camera, code-named J450, designed for home security, detecting people and automating tasks. The device will be battery-powered and could last from several months to a year on a single charge, on par with rival products. The device has facial recognition and infrared sensors to determine who is in a room. Apple believes users will place cameras throughout their home to help with automation. That could mean turning lights off when someone leaves a room or automatically playing music liked by a particular family member. Apple is planning to develop multiple types of cameras and home-security products as part of an entirely new hardware and software lineup. The goal is to compete with Amazon Ring, Google Nest and Roku Inc, capitalising on its customer loyalty to sell more products. It has also tested a doorbell that uses facial recognition technology to unlock a door. Apple already sells iCloud+ subscriptions with online storage for security footage, but they're aimed at third-party cameras. – Bloomberg
