Capital Raising - Malaysia

Malaysia

The country in Malaysia is projected to see the Total Capital Raised in the Capital Raising market market reach US$754.9m in 2024.
Traditional Capital Raising is set to dominate the market with a projected market volume of US$667.7m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$331,800.0m in 2024).
Malaysia's Capital Raising market is experiencing a surge in Real Estate Investment Trusts (REITs) offerings, attracting both local and foreign investors.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Malaysia has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Malaysia have shown a strong preference for capital raising activities, particularly in the form of initial public offerings (IPOs) and corporate bond issuances. This is driven by the desire to diversify investment portfolios and seek higher returns. Additionally, there is a growing interest in sustainable and socially responsible investments, which has led to an increase in green bond issuances.

Trends in the market: One of the key trends in the capital raising market in Malaysia is the increasing number of IPOs. Companies are opting to go public to raise funds for expansion and growth opportunities. The Malaysian government has also implemented initiatives to encourage more companies to list on the stock exchange, leading to a surge in IPO activities. Another trend is the rise of corporate bond issuances. Malaysian companies are turning to the bond market to raise capital for various purposes, such as refinancing existing debt, funding acquisitions, and financing infrastructure projects. The low interest rate environment and ample liquidity in the market have made corporate bonds an attractive option for both issuers and investors.

Local special circumstances: One of the unique aspects of the capital raising market in Malaysia is the presence of Islamic finance. Malaysia is a global leader in Islamic finance, and this has had a significant impact on the capital raising market. Islamic bonds, or sukuk, are a popular choice for companies seeking Sharia-compliant financing. The Malaysian government has also been actively promoting Islamic finance, which has further fueled the growth of the capital raising market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the capital raising market in Malaysia. The country has a stable and well-regulated financial system, which instills confidence in investors. The government has also implemented various economic reforms to promote investment and business growth. Additionally, Malaysia's strategic location and strong trade ties with other countries have attracted foreign investors to the capital raising market. Overall, the capital raising market in Malaysia is experiencing robust growth due to customer preferences for IPOs and corporate bond issuances. The government's initiatives to promote capital raising activities, the presence of Islamic finance, and favorable macroeconomic factors have all contributed to the development of the market. As Malaysia continues to attract both domestic and foreign investors, the capital raising market is expected to further expand in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.