As Asia shifts away from fossil fuels, Malaysia’s pipeline of initial public offerings (IPOs) is expected to grow as companies look to raise funds for energy transition projects, Bloomberg reported, citing Bursa Malaysia’s top official.
Speaking at the Bloomberg Sustainable Business Summit in Singapore, CEO Fad’l Mohamed said some of the companies involved are large firms, and as their projects move forward and start generating sustainable income and cash flow, they will turn to capital markets for IPOs. He also noted that there is enough investor interest to support demand for sustainable assets.
So far this year, 38 companies have launched IPOs in Malaysia. Bursa Malaysia is aiming for 60 new listings in 2025, after reporting 55 last year.
While the stock benchmark index has been one of the world’s weakest performers this year due to uncertainty from US tariffs, Mr Fad’l Mohamed said he remains optimistic for Malaysia’s markets.
He said he expects more liquidity to enter the system in the fourth quarter, helped by high cash holdings among local fund managers and a recent rate cut by Bank Negara Malaysia.
He also said changes in global supply chains driven by tariffs could open up new opportunities for local companies to form partnerships or collaborations. /TISG
