IPO market expected to improve in 2H25
PETALING JAYA: Industry experts are upbeat that Malaysia's initial public offering (IPO) market will continue its buoyancy into the second half of this financial year (2H25) despite global uncertainties.
Maybank Investment Bank regional head for equity capital markets Raymond Chooi told StarBiz he expects the momentum of IPO launches to continue and it would be possible to meet Bursa Malaysia's target of 60 listings for this year.
'The first half of 2025 saw increased volatility and caution with the FBM KLCI posting a decline of 6.7% and average daily trading volume in the market falling to RM2.5bil from RM3bil in 2H24.
'Further de-escalation in trade tensions is expected as there are clearer outcomes of trade negotiations.
'Locally, whilst individuals and businesses are adjusting to the impact of the sales and service tax's (SST) scope expansion, we believe the easier interest rate environment would help cushion any impact as well as improve liquidity that would eventually be positive for the equity market,' Chooi noted.
From January to July 2025, there were 37 IPOs on Bursa Malaysia which raised about RM4.2bil, out of which six IPOs were listed on the Main Market, 28 on ACE Market and the remaining three on the LEAP Market.
He highlighted that external developments remain a key factor on the country's economic performance.
Unless there's a major shock globally, Chooi expects the IPO momentum for the second half to improve compared to the first half as there's still ample domestic liquidity.
'Companies with good growth track record and trajectory and firm growth plans and strategies are expected to continue to pursue their IPO plan in the second half of the year.
'Since March 2025, we have completed three Main Market IPOs during a volatile period and successfully sustained investors' interest throughout the process, he noted.
Chooi said based on the latest filings (December 2024 to July 2025), he expects the IPOs in the second half to be primarily in the consumer, industrial, transport and logistics, energy and construction sectors.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the prevailing trend of IPO in 2025 thus far has been quite commendable.
'Nonetheless, the outlook for the global and domestic economy is likely to be challenging in view of the impending US tariff and geopolitical risks as well as the ongoing fiscal consolidation which would exert cost of doing business higher in the near term,' he noted.
He said this could result in prospective companies who wish to go for listing feeling jittery as the equity prices might not get the right premium post listing based on the prevailing trend.
'While the market condition is part of the consideration for the IPO, there are also other factors such as capital structure, ownership goals, corporate readiness, strategic goals and regulatory environment.
'I suppose the IPO listing target of 60 could be achieved,' Mohd Afzanizam said.
He added that sectors such as ports, healthcare, consumer and retail, industrial and manufacturing, technology and data centre, real estates and real estate investment trusts (REITS) are the possible ones that would dominate the IPO markets during the second half of the year.
Deloitte Malaysia transactions accounting support partner Wong Kar Choon
Meanwhile, Deloitte Malaysia transactions accounting support partner Wong Kar Choon said the IPO outlook in the country remains optimistic for the remainder of 2025, with 32 listings recorded as of June 30, 2025, putting Bursa Malaysia on track toward its full year target of 60 listings.
'However, the recent US trade tariffs and geopolitical tension have introduced uncertainty and we foresee that there could be an impact on the IPO market.
'Additionally, companies may delay their IPO plans, especially for export-driven companies that are affected by supply chain disruptions and cost pressures,' he said.
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