In a statement today, Deloitte said Malaysian bourses saw 28 IPOs raising US$715 million (RM3.36 billion) in the first 10-and-a-half months of this year. Bursa is targeting 31 listings for the whole of 2023.
“Once more, the ACE Market dominated this year’s IPO with 21 listings, while the improvement in the performance of the Main Market was encouraging,” it said, noting that the IPO market capitalisation for 2023 to-date has already surpassed that of 2022.
The total market capitalisation for IPOs in Malaysia reached US$2.77 billion (RM12.9 billion) this year from US$2.55 billion (RM11.96 billion) in 2022, it added.
Deloitte Malaysia disruptive events advisory leader Wong Kar Choon said it is evident the ACE Market is predominantly populated by companies in the realm of technology, creating a focus for investors.
“The surge in foreign direct investment (FDI) within Malaysia’s semiconductor ecosystem is a key catalyst propelling robust growth in the region,” said Wong during Deloitte’s Southeast Asia Annual IPO 2023 press conference.
He highlighted the northern region, particularly Penang, as a booming hub for tech-related IPOs, adding a geographical perspective to the narrative.
“Situated as a central hub for the semiconductor industry, Penang stands out, fostering a surrounding ecosystem that propels companies in the region towards IPOs,” said Wong.
“While IPOs are not absent in the Klang Valley, it’s worth noting the increased interest from the northern sector, particularly in the realm of technology,” he added.
Leading the pack
Meanwhile, electronics manufacturing services (EMS) provider NationGate Holdings Bhd emerged as the best performing IPO this year.
It had an impressive debut on Jan 12, rocketing by 59 sen or 155% to 97 sen from its IPO price of 38 sen. Its share price has surged by 232% since its market debut.
Health food supplements company DXN Holdings Bhd took the position of the largest IPO.
Wong said IPOs with reasonable valuations generated strong interest from the market and a good majority continue to demonstrate decent post-IPO share price performance.
“A formidable IPO pipeline is expected in 2024, buoyed by a healthy institutional and retail appetite, especially for consumer and tech or tech-related industries,” he said.
From a regional perspective, Indonesia, Thailand and Malaysia collectively raised approximately US$5.4 billion (RM25.32 billion), accounting for 98% of the total funds raised across Southeast Asia.
“Companies in Southeast Asia raised approximately US$5.5 billion (RM25.79 billion) from this year’s IPO listings to-date, down from US$7.6 billion (RM35.63 billion) from 163 IPOs in 2022,” it said.
Indonesia saw 77 IPOs which raised US$3.6 billion (RM16.89 billion), making up half of the region’s IPOs and 66% of the total IPO amount raised across the six exchanges.
This makes it the fourth strongest stock exchange year-to-date in 2023 globally, behind only China, the US and the United Arab Emirates.