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Malaysia saw 36 IPOs as of September 2024, highest since 2006

KUALA LUMPUR: Malaysia saw 36 initial public offerings (IPOs) for the first nine months of the year, its highest since 2006, signalling strong investor confidence.

"Notably, the third quarter contributed significantly to this count with 14 IPOs. This surge in activity marks a resurgence for Malaysia, boasting the highest number of IPOs since 2006, and signals a strong investor confidence," Ernst and Young (EY) senior executive director with the strategy and transactions team Kevin Chew said in a statement.

The economic climate in Malaysia is showing signs of robust positivity, reflected in the invigorated pace of the Malaysian IPOs.

Year-to-date (YTD) 2024, Asean saw a total of 94 IPOs raising US$2.5 billion, down from 127 IPOs raising US$4.9 billion.

In the third quarter of 2024 (3Q24) alone, there were 28 IPOs with proceeds totalling US$1.1 billion, representing a 100 per cent surge in proceeds from the previous quarter that saw 29 deals totaling US$0.6 billion.

EY said this was primarily driven by the prominent listing of 99 Speed Mart Retail Holdings Bhd, which stood as the second-largest IPO in the region in YTD 2024.

Meanwhile, across Asean other active exchanges in YTD 2024 include Indonesia (34 IPOs raising US$0.3 billion), Thailand (22 IPOs raising US$0.6 billion), Philippines (3 IPOs raising US$0.2 billion).

Singapore and Sri Lanka each had one IPO that raised US$19.5 million and US$1.5 million respectively.

EY said the remainder of 2024 is expected to see the IPO market influenced by central bank policies, geopolitical developments and key election outcomes

"Optimism is fuelled by lower interest rates and easing inflation, which are likely to encourage new listings and a resurgence in sectors sensitive to borrowing costs."Strong performance in key markets such as the US, Europe and India is expected to support IPO activity," it added.

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