Malaysia’s capital markets have outclassed other Southeast Asian exchanges with the highest number of new listings, along with the largest total fundraise and market capitalisation in initial public offerings, in around the first 10 months of 2024.
The country welcomed the highest number of public market debutantes in 18 years with 46 listings which raised a total of $1.5 billion, according to Deloitte data. These newly-minted public companies are now worth $6.6 billion, topping the record from 2013 and more than double that of 2023.
“Malaysia’s IPO market has demonstrated strong performance, bolstered by positive economic indicators, political stability, and supported by active investor participation, especially from foreign investors,” according to Deloitte’s partner for Malaysia, Kar Choon Wong, who spoke at the firm’s annual media briefing that was moved from Singapore to Kuala Lumpur for the first time this year.
“This has increased the vibrancy of Bursa Malaysia, which has seen encouraging oversubscription rates more than 200 times,” he added.
Malaysia’s listings this year made up over one-third of Southeast Asia’s IPOs, which totalled just 122 across six stock markets, including Singapore, Thailand, Indonesia, the Phillipines, and Vietnam. The $3-billion total capital raised has been the lowest in nine years for the region, diving 49% from last year as blockbuster listings waned.
99 Speed Mart Retail’s first-time public share sale, which raised $574 million on Bursa Malaysia in early September, has become the region’s biggest listing this year. Ranking second was Olympus Capital Asia-backed Thai Credit Bank’s listing on Thailand’s main bourse in February that notched up $208 million.
99’s market cap has reached $3.3 billion, while the Bangkok-based lender’s market cap stands at just $1 million.
Singapore, home to Southeast Asia’s largest stock exchange, saw four IPOs on its secondary bourse, which raised about $34 million in the first 10 months of this year. Meanwhile, Indonesia fell off the top 10 IPO list for the first time in four years due to a sluggish capital market on the back of an election year, Deloitte said in a release.
Currency fluctuations, regulatory challenges across markets, and geopolitical tensions have marred trade and investment this year, according to Hwee Ling Tay, Deloitte Southeast Asia’s accounting & reporting assurance leader.
“High interest rates across ASEAN economies further constrained corporate borrowing, dampening IPO activity as companies opted to delay public listings.. market volatility among major trade partners impacted investor confidence, while varied regulatory requirements across Southeast Asian countries created complexities for companies seeking cross-border listings,” said Tay.
Amid subdued public market sentiment this year, Southeast Asian companies have turned to private equity, driving private investment deal value to $6.2 billion, more than double the amount raised through IPOs.
The decline in IPO fundraise this year, after outperforming private equity investments in 2022 and 2023 following a down year in 2021 does not worry Tay, who expects the pattern to continue into the near future. “I’m actually optimistic… those with private equity investors, down the road will IPO, maybe within 12-24 months,” she said, expecting more rate cuts and easing inflation to create a more favourable environment for public listings in the years to come.
“Southeast Asia’s strong consumer base, growing middle class, and strategic importance in sectors like real estate, healthcare, and renewable energy remain attractive to investors. As foreign direct investment continues to flow into the region, 2025 is poised to be a year of renewed IPO activity across Southeast Asia,” she concluded.
