PETALING JAYA: Malaysia’s initial public offering (IPO) market is expected to gain further momentum over the next two to three years, supported by strong issuer interest and better performance from some recent major listings, according to CGS International Securities Malaysia country head Alan Inn (pic).
Inn said recent IPOs had performed well, attracting greater issuer interest and reinforcing a constructive outlook for Malaysia’s capital market over the next two to three years.
“Malaysia’s stability and improving fiscal position are also drawing increased capital into the equities market,” he told SunBiz.
However, while issuer interest in Malaysian IPOs has remained strong over the past few years, Inn said investor demand continued to be selective.
“Issuer interest in Malaysian IPO markets has been strong the past few years but investor demand has been very selective,” he said.
Malaysia recorded 60 IPOs in 2025, up from 55 in 2024, making it Asean’s leading market by number of new listings.
However, the total amount raised through IPOs fell to about RM5.96 billion from RM7.44 billion in 2024, according to the Securities Commission Malaysia (SC).
The market has remained active this year, with 41 IPOs recorded by late July, comprising six on the Main Market, 29 on the ACE Market and six on the LEAP Market.
Malaysia accounted for 43% of Southeast Asia’s IPO proceeds in the first half of 2026, with US$1.34 billion (RM5.5 billion) raised.
One of the standout transactions was Sunway Healthcare Holdings Bhd’s RM2.86 billion IPO, which was Malaysia’s largest IPO in nine years and closed 28% above its RM1.45 offer price on its first trading day.
For Inn, however, the next stage of development should involve bringing companies to market earlier in their growth cycle, rather than waiting until they have established a lengthy track record of strong profits.
“Malaysian issuers should be encouraged to list at earlier stages of its growth cycle and articulate stronger growth narratives and long-term strategic ambitions,” he said.
“On the other hand, investors should learn how to pick out quality companies instead of relying on just historical profit growth.”
The SC’s Capital Market Masterplan 2026-2030 aims to deepen Malaysia’s capital market and expand the range of financing available to businesses. It targets growth in the capital market from RM4.3 trillion at end-2025 to RM5.8 trillion by 2030, with further upside to RM6.3 trillion.
The SC said total funds raised through Malaysia’s capital market rose 35.4% to RM187.7 billion in 2025.
Inn said the expansion of Malaysia’s capital market was increasingly extending beyond IPOs, as companies turned to M&A, alternative financing and private capital to support expansion and strategic growth.
“We are seeing broader momentum in capital raising and corporate activity beyond IPOs,” he said.
“M&A activity has picked up as companies look to scale, diversify capabilities and strengthen their regional positioning.”
“Total funds raised through the capital market also rose sharply to RM187.7 billion, suggesting that companies continue to view the market as an important channel for growth capital,” he said.
Alternative financing is also becoming more relevant for micro, small and medium enterprises and mid-tier companies, with RM5.7 billion raised in 2025.
Committed funds in venture capital and private equity also increased by 21.66% to RM30.05 billion, pointing to a broader pool of capital available to companies at different stages of development.
“This points to a deeper financing ecosystem and provides companies with more options to fund expansion, transformation and acquisitions,” Inn said.
“While market sentiment remains selective given global volatility, the overall trend suggests that stronger companies are becoming more confident in pursuing strategic transactions, fundraising and regional opportunities where there is a clear growth rationale.”
The expansion of alternative funding and cross-border activity could further broaden Malaysia’s role as a regional capital-market hub.
CGS International has been positioning itself as a bridge between Chinese companies and Asean capital markets.
In January, CGS Malaysia hosted a market engagement session with Beijing-based DeHeng Law Offices and Bursa Malaysia aimed at attracting high-growth Chinese enterprises in the new economy to Malaysia’s capital market.
The initiative covers potential issuers in sectors including technology, advanced manufacturing, renewable energy and consumer goods.
Malaysia is also strengthening its capital-market links with Hong Kong.
In July, the SC and Hong Kong’s Securities and Futures Commission signed a MoU to strengthen regulatory cooperation and facilitate a simplified dual-IPO listing framework.
The framework, which takes effect in September 2026, allows companies pursuing simultaneous primary and secondary listings to use a single set of submission documents, including the prospectus.
Hong Kong has also recognised Bursa Malaysia as a Recognised Stock Exchange, allowing eligible Bursa-listed companies to apply for secondary listings in Hong Kong.
For CGS International, which operates across multiple Asian markets, these developments could create further opportunities to facilitate capital raising, listings, mergers and acquisitions as well as corporate expansion across China, Hong Kong, Malaysia and the broader Asean region.
The broader financing ecosystem could also help companies access capital at different stages of their development, reducing reliance on IPOs as the primary route to fund expansion.
For Inn, the challenge is therefore not simply to increase the number of companies coming to market, but to build a pipeline of businesses with stronger long-term growth prospects.
The next phase of Malaysia’s IPO market will depend on whether issuers can present compelling growth narratives while investors become more focused on business quality, earnings sustainability and long-term strategic potential.
