KUALA LUMPUR: Malaysia’s initial public offering (IPO) capital market tops the South-East Asian bourses in terms of total IPO funds raised in the first half of 2024 (1H24) with US$450mil, says Deloitte.
It said IPO funds raised in Malaysia accounted for 33% of the region’s US$1.4bil in proceeds raised for the period under review.
In its 2024 South-East Asia Mid-Year IPO Snapshot report, Deloitte said Thailand was the next most successful country with US$427mil raised, followed by Indonesia (US$248mil), the Philippines (US$194mil), Vietnam (US$37mil) and Singapore (US$20mil).
It said South-East Asia’s capital market saw a decrease in new IPOs, with just 67 IPOs in 1H24 compared with 85 in 1H23.
Deloitte said Indonesia had the most new IPOs with 25, followed by Malaysia (21 IPOs), Thailand (17 IPOs), and the Philippines (two IPOs), while Vietnam and Singapore both saw one IPO.
Meanwhile, in a statement yesterday, Deloitte Malaysia Transaction Advisory Services partner Wong Kar Choon said since 2018, the number of new listings on Bursa Malaysia’s ACE Market has surpassed that of the Main Market.
“We have also seen that a majority of these new listings in the ACE Market have recorded gains in their post-listing share price. “Encouragingly, half of these companies also saw double-digit gains in their share prices one-week post-IPO, indicating reasonable IPO valuations that are further supported by ample market liquidity,” he said.Wong noted that Malaysia would continue to have well-established brand names in the IPO landscape. He said that in 1H24, the local stock market saw fertility care specialist Alpha IVF Group Bhd raising about US$94mil.
“Notably, Malaysia also has four out of the top 10 IPOs in South-East Asia, as of 1H24. This clearly shows Malaysia’s positive economic landscape, and there are a lot of good companies poised to leverage their strong market presence to tap into the opportunities within the IPO capital market,” he added.
He also pointed out that the IPO landscape for Malaysia for the rest of 2024 appears hopeful, with Bursa Malaysia’s target listings of 42 remaining optimistic. — Bernama
