The Southeast Asian (SEA) capital market is showing notable resilience in 2025, defying a challenging global investment landscape that has been shaped by volatile macroeconomic conditions and ongoing geopolitical tensions. According to the latest insights from Deloitte, activity in the region’s initial public offering (IPO) space remains robust, with Malaysia and Indonesia emerging as the strongest performers in the first half of the year.

IPO Market Performance: Robust Proceeds Despite Fewer Listings

Between January and June 2025, Southeast Asia recorded 53 IPOs that collectively raised over $1.4 billion, up marginally from the same period last year, though the number of listings declined by 21%. The region’s IPO market capitalization surged to $7.7 billion, representing a significant 33% year-on-year increase. This performance comes in spite of headwinds such as persistent inflation, higher interest rates in developed markets, and uncertainties around global trade policies.

Several “blockbuster” IPOs propelled the market forward, with three major deals taking place in the first half of 2025 compared to one in the same period last year. The strategic focus among issuers has also shifted — more companies are prioritizing exit readiness through IPOs as private equity and venture capital activity remains elevated.

Malaysia: The Regional Frontrunner

Malaysia has reinforced its status as Southeast Asia’s leading IPO destination, accounting for 66% ($940 million) of total IPO proceeds in the region during the first half of 2025. This represents a dramatic 109% increase in proceeds year-on-year, supported by 32 new IPOs on Bursa Malaysia — well on track to meet the exchange’s ambitious target of 60 listings for the full year.

The standout listing was Eco-Shop Marketing Berhad, a homegrown dollar-store retail chain, whose IPO raised $230 million, marking it as the region’s largest so far this year. The average listing delivered solid first-day gains, indicating strong investor appetite for new equity issues in Malaysia.

“The IPO outlook in Malaysia remains optimistic for the remainder of 2025. However, the impact of recent U.S. trade tariffs and ongoing geopolitical tensions could usher in more cautious investor sentiment and potentially delay some listings, especially among export-driven companies,” said Wong Kar Choon, Transactions Accounting Support Partner at Deloitte Malaysia.

Despite these uncertainties, Malaysia recorded a 48% increase in listings and a 165% jump in total IPO market capitalization, a testament to the robust performance of its domestic capital market and the confidence of local and international investors.

Indonesia: Recovery Post-Election Spurs Larger Deals

Indonesia weathered post-election uncertainties and rebounded strongly, nearly doubling its IPO proceeds and market capitalization over H1 2025. While listings on the Indonesia Stock Exchange (IDX) dropped from 25 in H1 2024 to 14 in H1 2025 (a 44% decrease), the total funds raised increased 1.7 times, reaching $427 million.

The market capitalization of new listings soared from $1.2 billion to $3.5 billion, driven by larger, more mature companies that had previously delayed going public due to election-year uncertainties. The average IPO deal size tripled from $10 million to $30 million, highlighting a trend toward bigger, more impactful listings.

“The outlook for the rest of 2025 will hinge on policy clarity, continued infrastructure development, currency stability, and the availability of high-quality issuers,” said Jasmin Maranan, Capital Markets Advisor at Deloitte Indonesia.

Singapore: Reform-Fueled Recovery Registrations

Singapore’s IPO market is showing early signs of a revival, following notable regulatory reforms initiated by the Monetary Authority of Singapore (MAS). Noteworthy developments include the Mainboard IPO of Info-tech Systems Ltd and the high-profile listing of NTT DC REIT, which is seeking to raise approximately $864 million. These deals underscore a renewed interest among international issuers and cement Singapore’s reputation as a preferred venue for cross-border capital raising.

Analysts expect that continued enhancements to regulatory frameworks and market infrastructure could further bolster Singapore’s competitiveness in the months ahead.

Thailand: Facing the Bottom, Seeking Rebound

In stark contrast, Thailand recorded one of its lowest levels of IPO activity in 25 years, with only five deals raising a combined $30 million. External shocks, such as global trade disruptions, ongoing regional conflicts, and domestic political instability, were seen as major contributing factors to investor reticence.

However, sectors like banking, energy, and healthcare continue to show earnings growth, offering potential for a rebound in the second half of the year. The Thai government’s stimulus policies and expected inflows of foreign investment could provide the necessary impetus for a market recovery.

Vietnam: Secondary Market Reshuffling

Vietnam saw no new IPOs in H1 2025, but secondary market activity remained dynamic. Four firms moved from the Upcom secondary board to the main exchanges (HSX and HNX), and two unlisted public enterprises also chose to list. Vietnamese authorities remain upbeat about market reforms driving IPOs in the future, leveraging growing interest from both domestic and international investors to revitalize public offerings over the next 12 to 18 months.

Outlook: Resilient, Yet Cautious

Despite the challenges, Southeast Asia’s capital markets are demonstrating considerable resilience. The pipeline of companies awaiting IPOs remains strong, particularly as macroeconomic stability improves and market valuations normalize. However, the region remains sensitive to global shocks, including supply chain disruptions, trade tensions, and monetary policy changes in key economies.

As more family offices, private equity, and venture capital investors embrace digital transformation and technology-led growth, the region’s capital markets are expected to evolve further. Strategic sectors such as consumer services, technology, infrastructure, and financial services are likely to drive IPO activity in the near future.

While the first half of 2025 saw mixed performances across member states, Malaysia and Indonesia have established themselves as clear leaders, attracting significant investor attention and setting benchmarks for the region.