Malaysia is seeing a new kind of IPO in their bull market, called special purpose acquisition company. These kinds of companies are ones without assets, profits or revenues.

This is fairly new to Asia, with Cliq Enegy Bhd as the second such firm to be listed in the Kuala Lumpur bourse. There are three others preparing their own IPOs and the numbers come from the growth of Malaysian equities in the last four years. 

These SPACs though are not without any concerns as they have been known to be high-risk high reward investments. In the US, where many SPACs have been listed, a great number of them have performed well and have created their market value. There are many still though that have failed to make any acquisitions and was required to delist their shares from the public bourse.

The listing of SPACs have been known as blank check IPOs as these companies have been able to raise funds through stock market trading without any assets in their books. These are shell companies, without any transactions to their name except to purchase other corporations that would be later absorbed into the company.