Southeast Asia saw its first initial public offerings (IPO) hit a 9-year low this year, but Malaysia surged ahead, completing 46 IPOs in the first 10 and a half months of this year. Not only setting a new six-year high, but also raising funds of $1.5 billion (approximately 6.7 billion ringgit), representing half of the total funds raised in Southeast Asia.
According to Deloitte, Malaysia leads in three key indicators compared to other Southeast Asian countries: the number of IPOs, total funds raised, and IPO market cap.
In contrast, while the number of IPOs in Southeast Asia remains stable, the total funds raised hit a 9-year low, falling far below last year's $5.8 billion (approximately 25.9 billion ringgit). In the first 10 and a half months, there were 122 IPOs raising approximately $3 billion (approximately 13.4 billion ringgit). Moreover, only one IPO raised over $0.5 billion, compared to four of such scale last year.
Ernest Wong, Partner at Deloitte Malaysia Transaction Services, stated that Malaysia's IPO market has shown strong performance, mainly due to bullish economic indicators, political stability, and active participation from investors, especially foreign investors.
He stated at a press conference today that due to the increasing interest from companies and investors in IPOs, as well as Malaysia's excellent valuation, the Malaysian exchange is expected to have huge potential to become a hub attracting regional companies to go public.
In a statement, Deloitte emphasized that Malaysia raised $1.5 billion through IPOs this year, reaching its highest level since 2017. At the same time, the market cap reached $6.6 billion (29.5 billion ringgit), surpassing the previous year...