Southeast Asia has become a hotbed for investment, with a significant rise in Initial Public Offerings (IPOs). Malaysia is emerging as the region’s leader, boasting a 16% increase in new IPOs in the first half of 2023 (1H 2023).
According to Deloitte’s Southeast Asia Mid-Year IPO report, the region has seen a positive growth outlook. The economic revival, restoration of tourism, and domestic demand surge have been attracting more and more investors.
Wong Kar Choon, Deloitte Malaysia disruptive events advisory leader, pointed out that technology-enabled companies would keep obtaining necessary funds for expansion. It could be through an IPO or private equity funding.
Foreign direct investments are pouring in as the region reopens its doors. In turn, this influx has contributed to positive economic growth, even amid global uncertainties.
In 1H 2023, Southeast Asia’s IPO capital market achieved 85 IPOs, raising US$3.3 billion in proceeds. It’s a significant rise compared to 73 IPOs and US$3.1 billion in the first half of 2022.
Malaysia’s market, Bursa Malaysia, is holding strong with 16 listings. Companies like Radium Development Bhd and Cape EMS Bhd are among the top 10 listings in Southeast Asia. They raised a combined total of RM667.73 million in proceeds.
Compared to the same period in 2022, Bursa Malaysia had 16 listings that raised about RM2.1 billion, mainly due to heavyweight listing like Farm Fresh Bhd.
The data shows continued confidence in Malaysia’s capital market, with high oversubscription rates. It’s thanks to support from institutions and individual investors alike.
Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement has sent encouraging messages to stakeholders. It included the reduction of stamp duty rates for trading listed shares in Bursa Malaysia and revisiting policies to attract more investors.
The growth of IPOs in Southeast Asia, and Malaysia, in particular, offers an optimistic view of the future. As countries continue to rebuild from economic challenges, the region stands as an example of resilience, innovation, and potential.