Market Insights Financial Corporate Finance

Initial Public Offerings - Malaysia

Malaysia

The transaction value in the Initial Public Offerings market is projected to reach US$0.95bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 1.05% resulting in a projected total amount of US$0.96bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$30.09m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in Malaysia has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Malaysia have shown a growing interest in IPOs as a means of diversifying their investment portfolios and gaining access to new and potentially lucrative opportunities. The appeal of investing in IPOs lies in the potential for high returns and the excitement of being part of a company's journey from private to public.

Trends in the market: One notable trend in the Malaysian IPO market is the increasing number of tech companies going public. As the technology sector continues to expand globally, Malaysian investors are eager to capitalize on the growth potential of tech companies through IPO investments. This trend is reflective of the broader global shift towards technology-driven businesses and the increasing demand for digital solutions.

Local special circumstances: Malaysia's strategic location in Southeast Asia, along with its well-developed infrastructure and business-friendly policies, has made it an attractive destination for companies looking to go public. The country's strong regulatory framework and stable political environment provide a level of confidence for both local and foreign investors participating in the IPO market. Additionally, Malaysia's diverse economy and growing middle class contribute to the overall vibrancy of the IPO market.

Underlying macroeconomic factors: The overall economic stability and growth trajectory of Malaysia play a crucial role in shaping the IPO market. Favorable macroeconomic indicators, such as GDP growth, low inflation rates, and increasing consumer spending, create a conducive environment for companies to list on the stock exchange. Moreover, the government's initiatives to promote capital market development and attract foreign investments further support the growth of the IPO market in Malaysia.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.