KUALA LUMPUR, July 13 (Xinhua) -- Despite broader regional challenges, Malaysia leads Southeast Asia's initial public offering (IPO) performance in the first half, Deloitte data showed.

The firm said in a recent report that Malaysia recorded approximately 48 percent year-on-year increase in the number of listings to 32, with IPO amount raised increasing by approximately 109 percent to 940 million U.S. dollars, along with a corresponding uptick in total IPO market capitalization by approximately 165 percent to 4.04 billion dollars.

"The IPO outlook in Malaysia remains optimistic for the remainder of 2025, with 32 listings recorded as of 30 June 2025, putting Bursa Malaysia on track toward its full year target of 60 listings," said Deloitte Malaysia Transactions Accounting Support Partner Wong Kar Choon.

However, he noted the recent U.S. trade tariffs and geopolitical tension have introduced uncertainty, and he foresees that there could be an impact to the IPO market.

According to him, this situation may lead to cautious investor sentiments as investors may adopt a more cautious approach and favor less risky assets during this uncertain period.

Additionally, he opined that companies may delay their IPO plans, especially for export-driven companies that is affected by supply chain disruptions and cost pressures.

He also anticipates that the consumer industry with well-established brand names will continue to be the cornerstone of Malaysia's economic landscape and are poised to leverage their strong market presence to tap on the IPO capital market opportunities.

Overall, the Southeast Asia IPO capital market remained resilient in the first half of 2025. It saw 53 IPOs, with over 1.4 billion dollars in IPO proceeds raised and an IPO market capitalization of 7.7 billion dollars as compared to the first half of 2024, which saw 67 IPOs, just under 1.4 billion dollars in IPO proceeds and IPO market capitalization of 5.8 billion dollars.

This represents a 3 percent increase in IPO amount raised and an increase of 33 percent in IPO market capitalization, despite a 21 percent decrease in the number of IPOs across Southeast Asia, compared to the first half of 2024. ■