Malaysian M&As and IPOs expected to peak in 2019

In its weekly fund flow report, MIDF Research said that foreign investors acquired RM273.3mil worth of Malaysian equities in net value last week. The figure, which excluded off market trades, was more than three times the amount acquired in the preceding week worth RM86.6mil.

PETALING JAYA: The value of local mergers and acquisitions (M&As) as well as initial public offerings (IPOs) is forecast to climb over the next two years with the deal-making cycle to peak in 2019 before easing back in 2020, according to the third edition of the Global Transactions Forecast, issued by Baker McKenzie International and Malaysian member firm Wong & Partners.

The forecast predicts the number of M&A deals to rise to 390 in 2018, from 255 this year, with the value of these deals jumping to US$13.1bil in 2018 from US$6.1bil this year, and $15.2bil in 2019. Meanwhile, the value of Malaysian IPOs could peak at US$2.74bil in 2019. Overall, Asia Pacific M&A activity could peak at US$754bil and domestic IPOs at US$82bil in 2019.