Chip IPO Highlights Malaysia Deals Surging Toward 13-Year High

(Bloomberg) -- Initial public offerings are booming in Malaysia and a wave of upcoming listings including by a chip design firm is powering the market toward the biggest volume in 13 years.

IPOs have raised $1.2 billion in the first four months of 2026, already nearing the $1.4 billion for all of 2025, Bloomberg-compiled data show. Those included Sunway Healthcare Holdings Bhd, which raised 2.86 billion ringgit ($727 million) in the country’s largest offering in nine years. The pipeline includes chip design firm Skyechip Bhd, which would allow investors to tap into the hottest industry, as well as the REIT of IOI Properties Group Bhd.

Malaysia’s IPO market remained resilient as post-pandemic political stability and steady economic growth — especially compared with some Southeast Asian peers from Thailand to the Philippines — buttressed investor appetite. Now, with the artificial intelligence boom driving Asian markets to new heights, Malaysia’s equity capital markets are also poised for their next step.

“I expect the market to continue to be quite vibrant to be able to raise sizable amounts in the near term,” said Raymond Chooi, Maybank Investment Bank’s regional head of equity capital markets.

Skyechip is looking to raise 352 million ringgit this month, while IOI Properties REIT is on track for a 1.98 billion-ringgit IPO in the fourth quarter. Just those two would raise this year’s proceeds to $1.8 billion, the most for Malaysia since 2013, according to data compiled by Bloomberg.

Other potential issuers include Creador-backed pharmaceutical chain Big Caring Group and convenience store chain KK Mart Retail Bhd, both of which filed draft prospectuses.

Big Caring could leapfrog Sunway to be the year’s biggest listing as the company is seeking a valuation of 20 billion ringgit, people familiar with the matter have said.

Part of the reason for the increase in IPO activity is that some companies are just now regaining momentum post-pandemic, according to Chooi at Maybank. Some of the government’s policies, such as the national energy transition plan and semiconductor roadmap, are also kicking in and reflected in earnings, helping to buoy sentiment, Chooi said.

That means larger firms are now in a position to tap markets and take advantage of increased valuations — in contrast with the past few years when the bulk of listings came from smaller issuers.

“While last year was driven by volume of listings, we see that this year’s growth in IPO proceeds reflect an upshift in deal size and quality of listings,” Nor Masliza Sulaiman, the chief executive officer of CIMB Investment Bank Bhd., said by email.

The Southeast Asian country has been a rare bright spot even as the Middle East conflict roiled markets elsewhere, thanks to its status as an energy exporter. The impact of geopolitical tensions on Malaysian companies has been manageable and that has underpin issuer confidence in accessing the equity capital markets, Masliza added.

Still, there’s room to deepen overseas participation to ensure better absorption capacity and continued market performance for large deals. While Malaysia was the only country in Southeast Asia to see stock inflows this quarter, foreign shareholding in local shares remain near record lows.

“Continued execution and delivery will be important in supporting a durable equity market,” said Yen Voo, JPMorgan Chase & Co.’s head of Malaysia equity research. “Recent listings indicate that well positioned issuers with credible growth visibility and institutional sponsorship can attract demand.”