KUALA LUMPUR (Nov 19): Malaysia’s initial public offering (IPO) market continued to outperform its Southeast Asian peers so far this year, leading in terms of IPO count, funds raised and market capitalisation, according to Deloitte's latest report.

Malaysia has seen 46 listings so far this year compared with 32 listings last year. The number of companies going public is also the highest since 2006, surpassing Bursa Malaysia’s initial target of 42, the consultancy firm said on Tuesday.

As of Nov 15, 2024, Malaysia’s IPO had raised a total of US$1.5 billion (RM6.70 billion) — the highest since 2017 — with market capitalisation reaching US$6.6 billion (RM30 billion), more than double the figure for the entire 2023 period and the highest recorded since 2013.

“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," Deloitte Malaysia transactions accounting support partner Wong Kar Choong told reporters at Deloitte’s insight on Southeast Asia IPO.

He said Malaysia's IPO market has seen oversubscription rates more than 200 times, supported by active investor participation, especially from foreign investors.

“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 Malaysian markets outperformed the previous year,” Wong said.

The sectors leading the IPO listing are industrial products at 17; followed by consumer (16); technology, media and communications (4); energy and resources (4); and life science and healthcare.

Wong believed that the local stock exchange's target of 50 IPOs by the end of this year is achievable based on the number of draft prospectuses, and there will be at least 30 IPOs in the pipeline for 2025.

Meanwhile, Bursa is targeting 50 IPOs next year, Bursa’s CEO Datuk Muhamad Umar Swift was quoted saying recently.

Deloitte anticipates that the IPO market in Southeast Asia will rebound in 2025 despite the decline in IPO activity this year, supported by several factors including the continuous foreign direct investment (FDI) into the region.

Overall, the IPOs in Southeast Asia saw a total of 122 IPOs as of Nov 15, with US$3 billion funds raised, which is the lowest in nine years. In comparison to last year, there were 163 IPOs and US$5.8 billion funds raised in the region.

“Expected interest rate cuts alongside easing inflation may create a more favourable environment for IPOs in the years ahead,” Deloitte Southeast Asia accounting and reporting assurance leader Tay Hwee Ling said.

“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,” she added.