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Korean appliance maker Cuckoo successfully lists local subsidiary on Malaysian exchange

Published: 25 Jun. 2025, 18:33 Updated: 25 Jun. 2025, 19:22

Cuckoo announced June 25 that its Malaysian subsidiary, Cuckoo International (MAL) Berhad, has gone public. The image shows a ceremony held the same day celebrating the listing. [CUCKOO]

Cuckoo, a Korean home appliance company known for its rice cookers, successfully listed its Malaysian subsidiary on the Malaysian stock market, marking a major milestone after more than a decade of establishing a foothold in the country’s appliance rental market.

The company announced Wednesday that Cuckoo International (MAL) Berhad had completed its initial public offering (IPO) and began trading on the Main Market of Bursa Malaysia, the country’s leading stock exchange.

A total of 293.7 million shares were offered, including 143.3 million new shares and 150.4 million existing shares. The final offer price was set at 1.08 ringgit ($0.25), putting the total value of the offering at approximately 317.2 million ringgit, with a market capitalization of around 1.55 billion ringgit based on the new shares issued. The price-to-earnings ratio (PER) was 10.5.

The listing represents more than just a foreign unit’s IPO — it underscores Cuckoo’s success in localizing its business model in Malaysia over the past 10 years. Cuckoo entered the Malaysian market in 2014 and began by selling rice cookers and water purifiers. With Malaysia’s high demand for clean water due to water shortages and underdeveloped plumbing infrastructure, Cuckoo launched a drinking water purifier rental service in 2015.

The company pioneered Malaysia’s early rental market by introducing customer-selectable rental programs, filter replacement and maintenance services, and a reservation app. Its product portfolio has since expanded to include mattresses, massage chairs, and air purifiers.

As its market share in Malaysia’s rental market rapidly grew, so did Cuckoo’s overseas sales. The company said exports now account for about 30 percent of its 2 trillion won ($1.47 billion) in annual revenue, with Malaysian operations driving most of that growth.

Cuckoo and Samsung Electronics recently formed a strategic partnership. [CUCKOO]

Cuckoo is also set to begin renting out Samsung Electronics products through its Malaysian distribution network. On Monday, Malaysian media reported that the two companies had formed a strategic partnership. Samsung has supplied Cuckoo with key products — including Galaxy smartphones, smart TVs, AirDressers and refrigerators — on a business-to-business (B2B) basis. Cuckoo plans to begin renting them starting in July using its nationwide network.

Proceeds from the IPO will be used to expand products and services, strengthen distribution channels, improve logistics and warehouse systems, and upgrade data servers, the company said.

Despite market volatility and scheduling challenges, investor interest exceeded expectations, according to Hoe Kian Choon, CEO of Cuckoo International, adding that the company aims to achieve its growth targets through a flexible business model, rising wellness demand and innovation strategies.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [[email protected]]