Cuckoo International (Mal) Bhd., a unit of South Korea’s Cuckoo Holdings Co., plans to list on the Malaysian stock exchange on June 24, 2025.

The company aims to raise 395 million ringgit (US$93 million) through its IPO. This values the company at 1.55 billion ringgit (US$363.4 million)

It is awaiting approval to lower its public shareholding requirement from 25% to 20%.

The IPO was delayed due to US tariff-related market volatility in April.

CEO Hoe Kian Choon said the delay helped stabilize investor confidence, with no cornerstone investors withdrawing.

Founded in 2014, Cuckoo Malaysia has grown rapidly through its water purifier rental business and now holds nearly 20% of the home appliance rental market.

It reported a 75% year-on-year profit rise to 104 million ringgit (US$24.4 million) in the first nine months of 2024.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ The rising household debt-rental economy connection in Malaysia

Malaysia’s household debt is among the highest in ASEAN, creating a fertile environment for appliance rental business models like Cuckoo’s 1.

This economic reality aligns with Cuckoo CEO Hoe’s observation that “Malaysians are looking for the best way to actually maximize their value for money,” with rental options helping consumers maintain living standards despite financial constraints.

The timing of Cuckoo’s IPO coincides with concerning debt trends. For example, 877 Malaysians aged 18-40 faced bankruptcy in 2024, up from 727 in the previous year 2.

This financial pressure is driving consumer behavior changes, with many Malaysians seeking alternatives to large one-time purchases, explaining why Cuckoo has secured nearly 20% of the local appliance rental market.

The company’s rental-focused business model provides a hedge against economic downturns, as consumers typically become more rental-oriented during periods of financial stress.

2️⃣ Growth in health-conscious home appliance segments powers Cuckoo’s expansion

Cuckoo’s emphasis on water purifiers taps into a rapidly expanding market segment projected to grow at over 10% CAGR from 2015 to 2025, driven by increasing concerns about water quality and waterborne diseases 3.

The company’s diversification into air purifiers similarly positions it in another high-growth segment, with Malaysia’s air purifier market expected to expand at a 7.03% CAGR from 2025 to 2032 4.

These growth rates significantly outpace Malaysia’s overall economic growth projection of 4.6% for 2025 5, suggesting Cuckoo is strategically positioned in high-potential market segments.

Rising health consciousness among Malaysian consumers, particularly post-pandemic, has created sustained demand for products like water purifiers and air treatment systems that address fundamental wellness concerns 3.

The rental model gives Cuckoo a recurring revenue stream from its one million active subscribers, while creating opportunities for cross-selling additional health-focused appliances as reflected in the company’s 13% revenue growth.

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