KUALA LUMPUR (Nov 26): Malaysia is currently leading the region's initial public offering (IPO) market, with increasing participation from both institutional and retail investors, reflecting growing interest in capital markets.

Rakuten Trade head of equity sales Vincent Lau said the stronger performance is underpinned by attractive valuations, supportive regulators — Bursa Malaysia and the Securities Commission — the government's clear business-centric framework, and improving fundamentals.

“These are all key to the renewed confidence in our local bourse with net foreign inflows,” he said in a statement on Tuesday.

So far this year, 33 companies have been listed across Bursa Malaysia's ACE Market, Main Market (10), and LEAP Market (two).

The market is on track to reach 50 listings, with several more in the pipeline, including four on the ACE Market and one on the Main Market.

Rakuten Trade, based on draft prospectus exposures, forecasts 2025 to be another bumper year for IPOs, likely surpassing this year's record numbers.

Bursa Malaysia has set a target of 50 IPOs for next year, having already achieved its key performance indicator for 2024.

The online brokerage also noted that listings such as 99 Speed Mart Retail Holdings Bhd (KL:99SMART), Azam Jaya Bhd (KL:AZAMJAYA), and recently listed Life Water Bhd (KL:LWSABAH) demonstrate a renewed interest among retail investors.

Lau added that the positive global economic outlook, coupled with robust domestic fundamentals, positions Malaysia's equity market for sustained growth.

“Factors such as lower interest rates, China’s stimulus measures, and the Employee Provident Fund’s strong investment performance, likely to result in a 6% dividend rate, are poised to improve investor sentiment and drive further momentum in the equity market,” he added.

Uploaded by Lam Seng Fatt