Foodie Media Berhad’s (KLSE: FOODIE) IPO marks a pivotal milestone in the Malaysia stock exchange scene.
For decades the Malaysia market, although never shy of IPOs, has always featured conventional business models that focuses mainly on the Malaysian market.
Foodie’s IPO features a one-of-a-kind opportunity and serves as proof that innovative companies can IPO as well. Foodie’s evolution from a burgeoning social media and digital content platform focused on local Malaysian content is now morphing into a publicly traded enterprise, seeking regional expansion and technological advancement.
Business model
With roots firmly planted in Malaysia, the company has diversified into 37 brands spanning multiple Southeast Asian countries, amassing a social following of over 46 million users. Its business model capitalises on multiple revenue streams that include content creation, influencer and key opinion leader (KOL) marketing, affiliate marketing, and branded entertainment, positioning itself as an integrated platform that leverages social media, video production, and commerce.
The company’s business model hinges on creating a symbiotic relationship between content and commerce, anchoring its revenue in advertising fees, brand sponsorships, and performance-based campaigns. Its content covers a wide spectrum, including food, travel, lifestyle, and property, which actively engages audiences in a highly interactive and culturally relevant manner.
While most of the social media companies concentrate their efforts and building their followers on individual accounts, Foodie employs a divide and conquer method. Some Malaysian state have its own brands or pages, while certain products and services have their dedicated pages.
It helps the company to cover a broad base of interests without losing its identity.
Foodie Media’s monetisation strategy extends beyond traditional advertising, with push into influencer marketing, social commerce, and short-form video production, sectors that are experiencing exponential growth in Southeast Asia. Its regional footprint, which extends through Malaysia, Singapore, Thailand, Indonesia, and the Philippines, offers a diversified revenue base, further reducing geographic-specific risks.
Financials
Being an asset-light business, Foodie Media’s financials look impressive. It’s top-line grew +22.5% YoY FY 2023 vs FY 2022 and +42.9% YoY FY 2024 vs FY 2023. Net profit margin has always been above 30% over the past 3 years.
However, cost of sales and administrative expenses have also climbed higher, thus buffeting net income’s growth versus top-line’s growth speed.
It is notable to mention that the company’s gearing ratio is relatively minimal. The company has total assets of RM 18.2 million as of 30th Jun 2025.
IPO amount and proceeds
The workforce and administrative expenses will continue to balloon, since the company will be eyeing to spend RM 23.1 million, or 56% of the RM 41.4 million it plans to raise in the upcoming 36 months. That is roughly RM 8 million a year on average.
For its earnings per share to sustain and eke out growth, the company must target at least 30% growth in top-line to ensure growth in its EPS and margins.
Of the funds raised, RM 7 million will be for purchasing and renovation of its live streaming building and the remaining will be for upgrading equipment, subscription of software solutions and working capital.
Valuation
At an IPO price of 30 sen per share, coupled with an enlarged share capital of 888 million existing shares, Foodie Media will be valued at roughly RM 266.4 million. Its implied Price to Earnings (P/E) ratio exceeds 35x based on FY2024 profits.
It would be bigger than companies like POS Malaysia Berhad (KLSE: POS).
While the profit margins and growth runway has potential, like most IPOs, this one is on the more premium side.
There aren’t any existing listed business models similar to Foodie Media on Bursa Malaysia, but one can always benchmark GCL Global Holdings Ltd (NASDAQ: GCL) the parent company of Titan Digital Media.
Compared to GCL, Foodie Media does have better margins. And it has already a strong foothold in South East Asia. Founder Pinn Yang has proven to be charismatic and business savvy.
So it might not go down the way of GCL.
Risk and Reward & My Verdict
Foodie Media Berhad’s IPO presents a compelling growth story shaped by regional digital media trends, innovative monetization strategies, and regional diversification. It balances significant upside potential with noteworthy risks, especially given its high valuation and competitive landscape.
Ultimately, investors need to weigh their risk appetite carefully and consider Foodie Media’s long-term prospects against current market valuations. The company’s focus on expanding its content ecosystem, harnessing AI, and deepening regional footprint could support future growth, but caution remains warranted in the face of inherent sector and valuation risks.
I haven’t come across many Malaysian companies whose business model and financials struck a chord with me. Foodie Media is one of the very few.
Despite the competitive landscape, the company can persevere and stand out. But I am also wary of the key-man risk.
The valuation is the final nail on the coffin. As if key man risk is not enough, retail investors need to cough up to be part of Malaysia’s next wave of companies to IPO.
For me the risks outweighs the rewards, and I would be staying on the sidelines, but cheering for Foodie Media.
Foodie Media Bhd’s initial public offering (IPO) shares to the Malaysian public were oversubscribed by 24.63 times. It listed today, 28 November, and began trading at 35.5 sen.
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