In 2024, Malaysian initial public offerings (IPOs) have raised an impressive US$1.5 billion, marking the highest amount in 18 years. This figure represents over 50% of the total US$3 billion raised across Southeast Asia, despite the region experiencing a decline in the number of IPOs from 163 in 2023 to 122 this year [dc9fd2cd].
The Malaysian market recorded 46 IPOs in the first 10.5 months of 2024, with 99 Speed Mart Retail Holdings Bhd leading the pack with the largest IPO, valued at US$574 million. Overall, the market capitalization for IPOs in Malaysia reached US$6.6 billion [dc9fd2cd].
However, the IPO landscape has faced challenges due to high interest rates, currency fluctuations, and geopolitical tensions, which have affected investor confidence [dc9fd2cd]. Despite these hurdles, Deloitte's Wong Kar Choon anticipates a robust IPO market in 2025, predicting over 30 new listings. Notably, the ACE Market saw 34 listings, the highest since 2009, indicating a positive trend in smaller company listings [dc9fd2cd].
In January 2025, Malaysia's government investment funds are set to invest RM 120 billion (around $26 billion) in the domestic economy over five years. The Employee Provident Fund (EPF) is the largest public investment fund with over $253 billion in assets as of 2023, while Permodalan Nasional Berhad (PNB) follows with around $75 billion. The cumulative assets of six major government investment companies reached $427 billion in 2023, exceeding Malaysia's GDP of $400 billion [aecc549c].
The government aims to enhance its role in strategic sectors like semiconductors and clean energy, reflecting a broader trend of economic nationalism in the region. Despite past reform efforts, the Malaysian state maintains substantial ownership in key sectors, indicating a shift towards a more assertive industrial policy [aecc549c].
In parallel, the Pantomath Group has forecasted record IPO fundraising in India for 2025, predicting that it will exceed Rs. 2 lakh crore. In the first 11 months of 2024, 76 companies raised Rs. 1.3 trillion, with 34 companies already having SEBI approvals for Rs. 41,462 crore, while 55 firms await clearance for Rs. 98,672 crore [421dc510].
India's equity markets have reached a market capitalization of $5.29 trillion, with the Nifty and Sensex hitting all-time highs of 26,277.35 and 85,978.25, respectively. The GDP growth rate for FY24 stands at 8.2%, and the country aims for a $5 trillion GDP by 2027 [421dc510].
As Malaysia continues to lead the region in capital raising through IPOs and government investments, the performance of the financial market will be closely watched, especially in light of the ongoing economic uncertainties affecting investor sentiment across Southeast Asia. The optimistic projections from both Malaysia and India suggest a potentially vibrant IPO market in 2025, driven by strong economic fundamentals and increased corporate listings [dc9fd2cd][421dc510][aecc549c].