Southeast Asia IPO Proceeds Fall 13% to $3 Billion as Malaysia Defies Slump

Southeast Asia's IPO market raised $3 billion from 56 listings in the first nine months of 2026, down 13 percent in proceeds and 26 percent in deal count year on year, EY reported on Thursday. The region's slowdown ran against a global tide: worldwide IPO proceeds more than doubled over the same period.

The weakness deepened in the third quarter. Southeast Asia saw 20 IPOs raising $500 million between July and September, against 26 listings that raised $2.1 billion in the same quarter of 2025, according to EY's statement.

Which markets held up?

Malaysia led the region on both volume and proceeds. Bursa's home market recorded 38 IPOs raising $1.62 billion in the nine months to September, up from 37 listings worth $992 million a year earlier. The momentum held into the third quarter: nine IPOs raised $167.2 million, versus eight listings worth $94 million in Q3 2025.

Singapore told a split story. Eight listings in the first nine months — one more than last year — raised $1.28 billion, down from $1.54 billion. Its third quarter was rougher: three IPOs raised $227.6 million, compared with six listings that pulled in $1.53 billion in Q3 2025.

Indonesia contracted hardest. Seven listings raised $121.3 million in the nine-month period, against 23 IPOs worth $919.6 million a year earlier. Q3 showed a flicker of life on volume — six IPOs — but proceeds fell to $103.5 million from $492.1 million.

Thailand stayed small: three IPOs raised $21.3 million in nine months, down from eight listings worth $57.6 million. Q3 brought two deals worth $10.9 million, against three worth $30.1 million a year earlier.

Every market except Malaysia slowed in the third quarter. That single line explains the regional picture.

Why did sentiment sour?

Chan Yew Kiang, EY Asean IPO Leader, pointed to a mix of regulatory and macro pressures. "The effects of regulatory reforms across the Southeast Asia region, together with the muted economic outlook, had dampened listing sentiments in the second quarter of 2026," he said. "This, combined with the ongoing conflicts in the Middle East and uncertainties in near-term prospects, led IPO aspirants to take a more cautious approach with their listing plans."

He added that weak post-IPO performance reflects cautious sentiment, and the US Fed's interest rate hike also hit IPO transactions across Asean.

Exchanges are responding with liquidity programs. Singapore's Equity Market Development Program (EQDP), introduced in February 2025, "had injected liquidity and vibrancy in the local exchanges," Chan said, though "more needs to be done by corporates to improve liquidity and post-IPO performance."

Cross-border deals may offer a partial offset. Chan said regulatory reforms in the US and China could push issuers toward Southeast Asian listings, while noting the process can be long and complex. "Cross-border dual listings may be pursued by some as they seek to internationalize investor base and visibility," he said. "This bodes well for more transparency and better quality listings, and builds the momentum for cross-border transactions."

What does Malaysia's outperformance signal?

Nghia Trung Nguyen (Neil) of Capital Markets at Ernst & Young PLT said Malaysia's proceeds are encouraging and point to continued investor appetite for quality companies with compelling growth prospects. The capital market, he said, is supporting companies pursuing their next phase of growth — providing access to capital while broadening investor bases.

His caution for issuers was blunt: "Against an uncertain global backdrop, however, issuers need to be well-prepared and realistic about market timing and investor expectations." As investors turn selective, he said, "a strong equity story, backed by sound fundamentals, good governance and a clear growth strategy, will remain critical to achieving a successful listing and sustaining investor confidence beyond the IPO itself."

How did the rest of the world fare?

Asia-Pacific outside Southeast Asia boomed. The region logged 399 IPOs raising $93.2 billion in nine months — up 14 percent in volume and 79 percent in proceeds. Q3 delivered 151 deals worth $45.9 billion, against 117 worth $22.8 billion a year earlier. Greater China drove most of it, with mainland and Hong Kong exchanges fueled by strong domestic liquidity and cross-border capital flows; southbound mainland investment bolstered Hong Kong issuance while northbound flows opened mainland-listed securities to international investors. Aftermarket performance stayed mixed across Chinese exchanges, with conservative A-share pricing producing substantial first-day pops.

Globally, 908 IPOs raised $290 billion in nine months — 2 percent fewer deals but a 153 percent jump in proceeds from $114.4 billion. Q3 saw 387 deals raising $95.6 billion, up from 374 worth $52 billion. Southeast Asia isn't out of deals; it's just competing with a China-led market absorbing the world's IPO capital.