KUALA LUMPUR: Malaysian IPOs raised US$1.5 billion in capital this year, the highest in 7 years, making up half of the capital raised in the Southeast Asia.
At US$3 billion, capital raised in the region so far this year, is at a nine-year low.
The broader Southeast Asian IPO market faced significant headwinds in 2024 where the region saw 122 IPOs, raising about US$3.0 billion—a stark decline from the US$5.8 billion raised across 163 IPOs in 2023.
The decline was mainly due to high interest rates, currency fluctuations, and geopolitical tensions dampened investor confidence and delayed public listings.
Indonesia, traditionally a strong performer, experienced a notable slowdown in IPO activity, with no listings in the top 10 by size due to election-year uncertainties.
In contrast, Malaysia accounted for more than 50 per cent of the region's IPO funds raised, with 99 Speed Mart Retail Holdings Bhd holding the biggest IPO of US$574 million while Thailand and Indonesia collectively contributing to the remainder.
For the first 10.5 months of 2024, Malaysia recorded 46 IPOs.
The IPO market capitalisation reached US$6.6 billion, representing half of the region's total IPO market capitalisation, cementing Malaysia's leadership in Southeast Asia.
This performance marked a significant leap from the 32 IPOs and US$3.1 billion in market capitalisation recorded in 2023.
The strong showing in 2024 was bolstered by a vibrant ACE Market, which saw 34 listings, the highest since its inception in 2009.
"Malaysia's IPO market has demonstrated strong resilience and growth potential. Companies are capitalising on the country's stable economic outlook and favorable valuations, making Bursa Malaysia an attractive destination for listings," Deloitte Malaysia Transactions Accounting Support Partner Wong Kar Choon said.
He also highlighted that this is driven by robust consumption, strong public and private investment growth and a recovery in external trade resulting in expansion in all sectors particularly the construction.
Looking ahead, Wong expects Malaysia to do well in 2025 and is confident that Malaysia can achieve more than 30 IPOs.
Bursa Malaysia is set to become a regional hub for public listings with heightened interest from companies and investors, as well as increasing foreign participation.
The country's focus on innovation and sustainability—particularly in renewable energy—will likely attract more companies seeking to tap into robust investor demand, creating strong momentum for 2025.