MALAYSIA’s equity market was number 1 in IPO proceeds raised in Q1 2022
Initial Public Offering (IPO) happens when companies wanted to expand and they opted to go to the public to sell their shares and thus use the proceeds to fund their expansion or their business growth. Public gets to participate in these growth stories and some companies offer great returns. Many may even become a bluechip counter in the future too.
Here is the good news for Malaysia’s equity market. Malaysia’s equity market topped other Asean markets in the amount of IPO proceeds raised during the first quarter of 2022 (1Q22).
Article in themalaysianreserve.com Even though Malaysia was top in IPO proceed, ASEAN exchanges experienced a 57 percent decline in proceeds raised in Q1 2022 versus Q1 2021.
Ernst & Young Global Ltd (EY) said that number of deals in Q1 2022 was higher, with 29 IPOs versus 22 IPOs in Q1 2021.
It said, “During the quarter, Indonesia’s stock exchanges were the most active by deal numbers (12 IPOs raising US$219 million), while Malaysia’s exchange led by proceeds (US$362 million via five IPOs).”
Meanwhile Thailand’s exchanges saw five IPOs raising US$228 million, the Philippine Stock Exchange had four IPOs raising US$201 million, while Singapore’s Catalist welcomed three IPOs raising US$17 million. Please do read here for more details of IPOs here in ASEAN and the world. Article in themalaysianreserve.com
Why do IPOs happen?
When markets are not good, many companies would choose not to go public. The reason is a simple one. The appetite to buy stocks, especially in new companies will not be there when the economy is not doing well. However, when the markets start to be vibrant again, many companies would go back to their plans to get more public funding for their expansion via the equity market. Briefly, IPOs are also a reflection of the vibrancy of the market too. Let’s hope that it’s not just for Q1 yeah.
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