In its Southeast Asia Mid-Year IPO report, Deloitte highlighted that the region’s optimistic growth prospects have positioned it as a favoured destination among investors.
Deloitte Malaysia disruptive events advisory leader Wong Kar Choon said good technology-enabled companies would continue to get the funds they need for expansion, either through an IPO or via private equity funding.
“There continues to be an influx of foreign direct investment due to the region reopening its doors, restoration of the tourism industry, and booming domestic demand.
“Together, these factors have contributed to the positive economic growth in the region despite the global economic uncertainties,” he said.
In the first half of 2023 (H1 2023), the Southeast Asia IPO capital market saw a 16% increase in the number of new IPOs and a 5% increase in IPO amounts raised compared to the same period last year.
It achieved 85 IPOs in H1 2023, equivalent to US$3.3 billion (RM15.08 billion) in IPO proceeds raised and US$20.1 billion (RM91.86 billion) in IPO market capitalisation.
Comparatively, in H1 2022, it recorded 73 IPOs, resulting in US$3.1 billion (RM14.17 billion) in IPO proceeds and an IPO market capitalisation of US$35.4 billion (RM161.78 billion).
On the homefront, Bursa Malaysia stands strong with 16 listings in H1 2023, raising approximately RM1.6 billion with a market capitalisation of RM9.4 billion.
Radium Development Bhd and Cape EMS Bhd are among the top 10 listings in Southeast Asia, with a combined total of RM667.73 million raised in proceeds, said the report.
Comparatively in H1 2022, Bursa raised approximately RM2.1 billion from around 16 listings, mostly attributed to the market debut of a strong heavyweight, Farm Fresh Bhd.
“These data points to continued confidence in Malaysia’s capital market, with a proven track record of business.
“Most of the 16 IPOs have had high oversubscription rates due to the support from institutions and retail investors,” Wong said.
He noted that the recent announcement by Prime Minister Anwar Ibrahim on capital market competitiveness had sent positive signals to stakeholders in the capital market.
The measures announced include the reduction of stamp duty rates for the trading of listed shares in Bursa, along with a review of policies aimed at expanding the investor base.