Aquawalk Group Berhad (AQUAWALK)

 

✅ IPO Highlights

  • The IPO price: RM 0.31 per share. iSaham+1

  • Number of new shares to be issued via Public Issue: ~368.6 million shares (≈20% of enlarged share capital). DagangNews - Berita Bisnes Anda+1

  • Offer for Sale (existing shares) also ~368.6 million shares (≈20% of enlarged share capital). Mahersaham+1

  • Total enlarged share capital after listing: ~1.843 billion shares. iSaham+1

  • Estimated market capitalisation at listing: ~RM 571 million (based on IPO price × enlarged shares) according to analysts. iSaham+1

  • Oversubscription: The IPO was oversubscribed by ~6.2× according to public news. The Malaysian Reserve+1

  • Use of proceeds: New funds will be used for expansion CAPEX (new aquaria, upgrades), IT system improvements, working capital and listing costs. iSaham+1

🎯 Business Overview & Investment Considerations

  • Aquawalk is a developer/operator of aquaria attractions (e.g., Aquaria KLCC), and provides design/maintenance services for aquarium-type projects. iSaham+1

  • It has shown strong growth: e.g., revenue and profitability improved significantly in recent years (pre-IPO figures). Mahersaham+1

  • Dividend policy: The company proposes to distribute at least 30% of profits after tax (PAT) from FY2025 onwards. Mahersaham

  • Risks to note: heavy reliance on tourism/visitor footfall, execution risk of new projects/expansion, cost of operations (marine life, maintenance) and geographic diversification still in early phase. iSaham+1

📅 Key Dates

  • IPO closing date: 7 November 2025 (based on prospectus summary) iSaham+1

  • Listing date: 19 November 2025 on the ACE Market. The Edge Malaysia+1

🔍 My Quick Take

  • The IPO presents a growth-oriented leisure/tourism investment (aquarium attractions) with proven profitability and a clear expansion plan.

  • The valuation (P/E around ~15.7× based on FY2024 adjusted PAT) appears reasonable for its sector and growth profile. iSaham

  • That said, execution risk is non-trivial: new projects (in Sabah and Indonesia) are still to ramp up, and the business is somewhat sensitive to macro/visitor/travel-related headwinds.

  • For investors considering subscribing: important to assess your comfort with tourism/experience-economy risks + whether the expansion pipeline will deliver as planned.

1. Company & Business Overview

Aquawalk Group Berhad is a Malaysia-incorporated company engaged in the development and operation of aquaria (oceanarium/under-water ecosystems) and related services. The Star+4iSaham+4Bursa Malaysia+4
Key business lines:

  • Ownership and operation of aquaria such as Aquaria KLCC (Malaysia) and Aquaria Phuket (Thailand). iSaham+2The Edge Malaysia+2

  • Holding a 40% stake in PT Jakarta Akuarium Indonesia (JAQS) in Indonesia. iSaham+1

  • A subsidiary that provides design, development and maintenance services of aquaria to third-parties (e.g., consultancy or turnkey services). iSaham+1

  • Focus on “experiential attractions” with conservation/education themes—leveraging marine ecosystems, visitor footfall and tourism synergy. The Star

Listing / IPO snapshot

  • IPO price: RM 0.31 per share. iSaham+1

  • Enlarged share capital after listing: approx 1,843 million shares. iSaham

  • Estimated market cap at listing: ~RM 571 million. iSaham+1

  • IPO size (new shares via public issue): 368.6 million shares (~20% of enlarged cap) and an offer for sale of 368.6 million existing shares (~20%). i3investor+1

  • Use of proceeds: The gross proceeds from new shares will be used for expansion (CAPEX), IT system upgrades, working capital, listing expenses. The Star+1

2. Financial Highlights & Valuation

From publicly-reported sources:

  • IPO P/E ratio (FYE basis): ~15.7×. iSaham+1

  • Analysts’ fair value estimates are around RM 0.37 to RM 0.45 per share. iSaham+1

  • The company reported strong profit margins pre-pandemic and has been recovering from pandemic downtime. For example: from about RM 71.9 million revenue in 2022 to ~RM 104.3 million in 2024 end. Moomoo+1

3. Use of Proceeds

Here is how the company plans to use the funds raised from the new shares:

PurposeAmount (RM million)Approx % of IPO proceeds
Upgrading/Developing new attractions at Aquaria KLCC~12.20~10.7% iSaham+1
New attractions at Aquaria Phuket (Thailand)~20.70~18.1% iSaham
Construction of a new aquarium in Kota Kinabalu (Sabah, Malaysia)~39.57~34.6% iSaham
Construction of a new aquarium in Java (Indonesia)~17.30~15.1% iSaham
IT systems improvement~3.00~2.6% iSaham
Working capital~14.49~12.7% iSaham
Listing expenses~7.00~6.1% iSaham
Total~114.27 million100% The Star+1

The large part of capex is devoted to new or upgraded aquarium attractions (Malaysia, Thailand, Indonesia) which shows growth ambitions.

4. Strengths, Weaknesses, Opportunities & Threats (SWOT)

Here’s a distilled SWOT analysis based on available info:

Strengths

  • Established track record with flagship facility (Aquaria KLCC) and recognised brand in aquarium/visitor-attraction business.

  • Geographical spread across Malaysia, Thailand, Indonesia (via associate) giving diversification.

  • High profit margin business (historically >30% PAT margin) post-pandemic recovery. Moomoo

  • Growth-oriented: significant CAPEX pipeline showing potential for scaling up visitor experience.

Weaknesses

  • Heavy reliance on visitor footfall and tourism — which is sensitive to macroeconomic, travel restrictions, pandemics etc.

  • New projects (Sabah, Indonesia) entail execution risk: building cost, regulatory approvals, ramp-up of visitor numbers.

  • Capital intensive: Aquaria require large upfront CAPEX (construction, marine life, maintenance) and ongoing operational costs.

  • Limited public disclosure of certain details (e.g., detailed peer comparison, full breakdown of fixed vs variable costs) — so risk assessment may be opaque.

Opportunities

  • Rising domestic and international tourism in SEA region could boost visitor numbers across its facilities.

  • Thematic expansion (new exhibits like penguin tank, sand-tiger shark etc) could enhance ticket pricing, premium visitors. The Star

  • Growth via third-party services (design & maintenance of aquaria) which may have higher margin/less CAPEX than full ownership.

  • Sustainability/education trend: as consumers increasingly value “experience + conservation”, aquaria can align with ESG themes.

Threats

  • Economic headwinds (cost inflation, slower tourism) may reduce visitor count or raise operational costs (marine species, energy, maintenance).

  • Competition: other leisure attractions, theme parks, VR/experience economy may divert visitors.

  • Regulatory/environmental risks: Marine life licensing, animal welfare standards, environmental compliance may create cost or reputational risk.

  • Currency/foreign-market risk: with expansion into Thailand & Indonesia, exposure to foreign markets, cross-border risks.

5. Key Risks & Considerations

  • Implementation risk for new projects: The pipeline of building new aquaria in Sabah and Java means there is time until full revenue contribution, and cost overruns are possible.

  • Visitor variability: Even for existing facilities, visitor numbers can be volatile (seasonality, tourism trends, health crises).

  • Working capital/maintenance costs: Aquaria are heavy on fixed costs (infrastructure, marine life, facility management) so leverage can impact margin if visitor decline.

  • Valuation premium: The IPO P/E (≈15.7×) is not extremely high but given the growth ambition and execution risk, the upside needs to be weighed carefully.

  • Dividend policy: While the company proposes to pay at least 30% of PAT from FY2025 onwards, actual payout will depend on earnings, capex needs, cash flow.

6. My Observations & What to Look Out For

  • The fact that the use-of-proceeds is heavily weighted toward expansion suggests the company views growth as key. Investors should monitor the timetable for each project (KLCC upgrade, Phuket new exhibits, Sabah & Java build) and when they expect to contribute to earnings.

  • Given the reliance on tourism/visitor numbers, it may be prudent to look at sensitivity: what happens if footfall grows slower than projected, or costs rise faster than budget.

  • Compare its valuation to peers in travel/leisure, attractions, or theme parks in Malaysia/ASEAN. The median P/E for Travel, Leisure & Hospitality is cited ~13.1× in one source vs Aquawalk’s ~15.7×. iSaham

  • Look into the corporate governance: management track-record, alignment of shareholder interests, major shareholders/insiders.

  • Monitor macro-factors: tourism recovery in Thailand/Indonesia/Malaysia, exchange rates, cost inflation, competition from other experiential offerings.

  • For longer-term investors: the sustainability of the business model (maintenance & renewal of exhibits, captive marine life costs, evolving themes) will matter.

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