Malaysia has led Southeast Asian (SEA) region with record initial public offerings (IPOs) this year, Deloitte said Tuesday.

The firm said in a statement that this year has been an exceptional year for Malaysia’s IPO market as it has seen 46 listings in 2024 thus far – the highest since 2006 – up from 32 across the whole of 2023.

The total amount raised through IPOs has stabilized at $1.5 billion, the highest since 2017, while market capitalization has reached $6.6 billion, more than double that of the previous year and the highest recorded since 2013.

The ACE Market continues to dominate this year’s IPOs with 34 listings, which is the highest number of IPOs ever recorded since the inception of the ACE Market in 2009.

Overall, all three Malaysia markets outperformed the previous year.

“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,

“This has increased the vibrancy of Bursa Malaysia, which has seen encouraging oversubscription rates more than 200 times,” said Wong Kar Choon, Transactions Accounting Support Partner, Deloitte Malaysia.

As Malaysia enters a more stable growth phase after a turbulent few years, he expects the country’s economy to benefit from the carryover effect of this strong momentum.

“With the heightened interest in IPOs by both companies and investors, as well as the impressive valuations being achieved in Malaysia, there is huge potential for Bursa Malaysia to become an attractive listing destination for regional companies,” he added.

Although the number of IPOs in Thailand has decreased compared to the previous year, with only 29 listings in 2024, the total amount of funds raised – $756 million – represents 26 percent of the region’s total, placing Thailand among the top three markets in Southeast Asia.

While challenges with economic decoupling and climate change persist, the country’s capital market continues to grow and recover, fueled by strong governance and political stability.

There are opportunities in the Thai market, with a strong pipeline of upcoming IPOs in the consumer, life sciences and health care and real estate onvestment Trusts (REITs) sectors.

“In 2024, Thailand’s stock market landscape and IPO listings reflect a combination of economic recovery and moderate growth,

“As companies seek to capitalize on post-pandemic growth, many have demonstrated resilience and future-readiness with the development of business strategies and operations which have adopted generative artificial intelligence (AI) and robotics,” said Wilasinee KRISHNAMRA, Transactions Accounting Support Partner, Deloitte Thailand.

According to her, the regulator has also introduced initiatives to enhance market transparency and support new and growing businesses, including small and medium-sized enterprises (SMEs), further stimulating fundraising activities.

Indonesia’s IPO market also recorded a significant decline, with 39 IPOs raising $368 million in 2024, compared to 79 IPOs raising $3.6 billion throughout 2023.

Smaller companies have launched IPOs with more conservative fund-raising targets as 2024 was an election year in the country, with uncertainty exacerbated by global market headwinds.

Among the top ten IPOs by funds raised, listings from the consumer and energy and resources industries accounted for nine of them.

Consumer product IPOs offered stability during uncertain times due to the country’s substantial consumer base.

The energy and resources industry, along with its supporting industries, continues to be a major influence on the Indonesian IPO market this year, despite the reduction in the number of listings during the year as compared to 2023.

“As the local market awaits more clarity on the fiscal and monetary policies under the new administration, economic prospects and domestic growth remain positive, driven by government-led infrastructure and digital transformation initiatives, a large consumer base, good demographic trends, and abundance of natural resources,

“In addition, capital market regulators are taking critical steps to further enhance market appeal and liquidity with a hope of boosting listings in 2025,” said Jasmin Maranan, Capital Markets Advisor, Deloitte Indonesia.

Meanwhile, Vietnam, saw only one IPO listing in the first 10.5 months of 2024, which raised approximately $37 million.

Remarkably, this single IPO, which is also Vietnam’s first in the financial technology sector, has surpassed Vietnam’s market performance for the whole of 2023 and is approximately five times larger than the average value of IPOs from 2021 to 2023.

“Vietnam’s stock market is showing signs of recovery in 2024, supported by favorable macroeconomic conditions and a low-interest rate environment,

“Additionally, the government has issued new regulations to improve the ratings of the Vietnam stock market to bolster investor confidence going into 2025,” said Van Trinh BUI, Transactions Accounting Support Partner, Deloitte Vietnam.

Singapore, on the other hand, saw four Catalist IPOs raising approximately $34 million in the first 10.5 months of this year.

The four listings are in the consumer, industrial products, and life sciences and health care industries.

SGX also saw two new secondary listings from the Hong Kong Stock Exchange: Helens International Holdings, a China-based investment holding company mainly engaged in bar operations and franchising, and PC Partner Group Limited, a manufacturer and distributor of electronic products.

“There seems to be a renewed focus on REITs in Singapore. As global interest rates stabilize, investor appetite for income-generating assets like REITs is expected to strengthen,

“With its established REIT framework, Singapore remains a preferred listing destination for REITs in Asia, attracting both local and international issuers looking to tap into a well-regulated market with high liquidity,” said Darren Ng, Transactions Accounting Support Partner, Deloitte Singapore.

According to him, the Monetary Authority of Singapore has also convened a review group to assess and enhance the country’s IPO ecosystem, focusing on making the listing process more accessible and attractive for companies.

“This initiative is expected to encourage more diverse listings and improve market efficiency, reinforcing Singapore’s status as a leading financial hub,

“With these favorable conditions and regulatory support, the city-state’s IPO market, particularly in the REIT sector, is set for robust growth in 2025,” he added.

#IPOTrendsSEA #MalaysiaIPO #SoutheastAsiaEconomy #CapitalMarketsGrowth #DeloitteInsights #Ifvex