Singapore’s dismal IPO market has companies eyeing Malaysia

SOME Singaporean companies are looking to sell shares in Malaysia’s booming market, as the city-state remains on track for its worst year for new stock listings in a quarter century.

A shift would buck the historical pattern of Malaysian firms offering equity in Singapore, which has traditionally been seen as offering better access to global institutional investors.

Singapore-listed Grand Venture Technology Ltd., a supplier to the semiconductor industry, is eyeing a secondary listing in

Malaysia that could happen as early as 2025, Bloomberg reported earlier this month. UMS Holdings Ltd., another chip-related firm listed in Singapore, has said it is considering a similar move.

“We believe these companies are looking to tap a different liquidity pool, and Malaysia is a choice given the proximity and depth of market,” Raymond Chooi, regional head of equity capital markets at Maybank Investment Bank Bhd, said of Singapore-based firms broadly.

Malaysia has seen a surge in listings, with more than 30 deals raising a total of $1.3 billion so far this year, more

than in all of 2023, according to data compiled by Bloomberg. In contrast, only one company has debuted thus far in Singapore, which is on track for its lowest annual volume of initial public offerings since 1998.

Relative political stability, eased market regulation and a boom in local stocks tied to artificial intelligence have helped

Malaysia regain favor with global investors. The Kuala Lumpur Composite Index is up 15% this year, on track for its best

performance since 2010.

Singapore, meanwhile, has been struggling to lure new share sales amid outdated rules and poor liquidity. The Straits Times Index is up about 11% so far this year, trailing measures of global and regional peers.

Malaysia’s market reflects “the success of the bourse’s efforts in tweazing its operating model to attract small-and

mid-cap companies to list,” said Chan Yew Kiang, Asean and Singapore IPO leader at Ernst & Young LLP. Meanwhile, “companies operating in sectors that are considered more niche, or in innovative sectors, such as technology and life sciences, may

face a lower valuation and investor interest” in Singapore, he added.

Among upcoming deals expected to take place in Singapore, SCI Ecommerce Pte. is planning to list on the domestic exchange next year, Bloomberg reported earlier this month. US-listed software firm AvePoint Inc. is said to be weighing a second listing in the city-state.