Southeast Asia’s initial public offering (IPO) market weakened in the first nine months of 2026, with the number of listings falling 26 percent and proceeds declining 13 percent year on year, despite stronger activity in Malaysia, according to the latest IPO market statistics revealed by EY on Thursday.
The region recorded 56 IPOs raising a combined $3 billion in the year to September, compared with 76 listings that raised $3.45 billion in the corresponding period last year, EY said in a statement.
The slowdown was more pronounced in the third quarter, when Southeast Asia saw 20 IPOs raising $500 million, against 26 listings that raised $2.1 billion in the same quarter of 2025.
The contrasting performances across the region’s major markets reflected different levels of fundraising activity, with Malaysia emerging as the strongest market by listing volume and proceeds, while Singapore remained a significant contributor to regional fundraising despite lower proceeds.
Malaysia recorded 38 IPOs raising $1.62 billion in the first nine months of 2026, compared with 37 listings that raised $992 million in the same period last year.
The country also maintained its momentum in the third quarter, with nine IPOs raising $167.2 million, up from eight listings that raised $94 million a year earlier.
The stronger fundraising performance placed Malaysia ahead of other Southeast Asian markets in terms of IPO volume and proceeds during the nine-month period.
Singapore, meanwhile, recorded eight IPOs raising $1.28 billion in the first nine months, compared with seven listings that raised $1.54 billion in the corresponding period of 2025.
Although the number of listings increased, total proceeds declined, reflecting the lower amount of capital raised from IPOs during the period.
Its third-quarter performance was also weaker, with three IPOs raising $227.6 million, compared with six listings that raised $1.53 billion in the same quarter last year.
Indonesia saw a sharper contraction in IPO activity, recording seven listings that raised $121.3 million in the first nine months of 2026, against 23 IPOs worth $919.6 million a year earlier.
However, its third-quarter listing volume showed some improvement, with six IPOs raising $103.5 million, compared with nine listings that raised $492.1 million in the corresponding quarter of 2025.
Thailand also experienced a slowdown, with three IPOs raising $21.3 million in the first nine months, down from eight listings that raised $57.6 million a year earlier.
In the third quarter, the country recorded two IPOs raising $10.9 million, compared with three IPOs worth $30.1 million in the same period last year.
“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,
“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,” said Chan Yew Kiang, EY Asean IPO Leader.
According to him, weak post-IPO performance reflects cautious market sentiments and the interest rate hike by the US Fed also impacted IPO transactions across Asean.
Hence, in the third quarter of 2026, with the exception of Malaysia, IPO transaction counts across Southeast Asia slowed compared with the same period last year.
“Exchanges in the region also began to focus on unlocking shareholders value through different initiatives,
“For example, in Singapore, while the Equity Market Development Program (EQDP) that was introduced in February 2025 had injected liquidity and vibrancy in the local exchanges, more needs to be done by corporates to improve liquidity and post-IPO performance,” said Chan.
He added regulatory reforms and rules in the US and China may also lead to cross-border listings in Southeast Asia but 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,
“This bodes well for more transparency and better quality listings, and builds the momentum for cross-border transactions,” he added.
Meanwhile, Nghia Trung Nguyen (Neil), Capital Markets, Ernst & Young PLT said Malaysia stood out in Southeast Asia with 38 IPOs raising $1.62 billion in the first nine months of 2026, exceeding both the number of listings and proceeds recorded over the same period last year.
He said the stronger proceeds are encouraging and point to continued investor appetite for quality companies with compelling growth prospects.
This momentum also reflects the role of the capital market in supporting companies as they pursue their next phase of growth, providing access to capital while broadening their investor base and market profile,” he added.
“Against an uncertain global backdrop, however, issuers need to be well-prepared and realistic about market timing and investor expectations,
“As investors become increasingly selective, 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,” he said.
Beyond Southeast Asia, the Asia-Pacific IPO market presented a stronger picture, with 399 listings raising $93.2 billion in the first nine months of 2026. This represented a 14 percent increase in deal volume and a 79 percent rise in proceeds year on year.
In the third quarter, the region recorded 151 IPOs raising $45.9 billion, compared with 117 listings that raised $22.8 billion in the same period last year.
Greater China accounted for most of Asia-Pacific’s IPO activity in the third quarter, with exchanges in the Chinese mainland and Hong Kong driving much of the increase in listings and fundraising.
Strong domestic liquidity in China and cross-border capital flows supported new issuance across technology sectors, while selective listings in South Korea and the busiest quarterly IPO activity in Oceania this year also contributed to the region’s performance.
However, aftermarket performance was mixed across Chinese exchanges. Conservative pricing for some mainland A-share IPOs generated substantial first-day gains for investors, indicating differences in pricing dynamics across markets.
The growing flow of capital between the Chinese mainland and Hong Kong also supported IPO activity. Southbound investment from mainland China bolstered new share issuance in Hong Kong, while northbound flows provided international investors with greater access to eligible mainland-listed securities.
Pre-IPO financing structures and anchor investors also played an increasingly important role in supporting new listings across Asia-Pacific.
These arrangements provided issuers with greater flexibility to pursue IPOs when market conditions were favourable, while helping build investor confidence ahead of offerings.
Globally, IPO activity remained mixed in terms of deal volume and fundraising value.
A total of 908 IPOs raised $290 billion in the first nine months of 2026, representing a 2 percent decline in the number of deals but a 153 percent increase in proceeds from 922 listings that raised $114.4 billion in the same period last year.
In the third quarter, global IPO activity increased to 387 deals raising $95.6 billion, compared with 374 IPOs that raised $52 billion a year earlier.
EY Malaysia, SAINS collaborate to advance digital & AI transformation in Sarawak