South-East Asian markets are experiencing intensified competition amid shifting geopolitical dynamics, prompting companies to prioritise strategic fit over market prestige in their initial stock market listing (IPO) decisions.
As Asia emerges as a dominant force in dealmaking, companies are exploring opportunities beyond established financial centres. ‘What we are seeing is companies increasingly looking beyond established centres toward markets like Vietnam and Thailand, where geopolitical headwinds are less pronounced,’ says Justin Smith, managing director at Australian virtual deal room provider Ansarada.
Malaysia, Indonesia and Thailand raised 98% of IPO capital in the region in the first half of 2025
Malaysia has emerged as a regional frontrunner, with 32 IPOs raising US$940m in the first half of 2025, according to a Deloitte report. Together with Indonesia and Thailand, the three markets have attracted US$1.397bn in IPO capital in that period (98% of the regional total).
Wenxue Tan, partner and private equity lead at RSM in Singapore, says that while Singapore maintains its position as a premier financial hub with substantial market depth and liquidity, the emerging exchanges of Malaysia, Indonesia and Thailand are increasingly active.
The right venue
The developing markets provide compelling IPO alternatives that may better align with companies’ growth strategies and regional footprint. ‘Regional venues may provide lower listing costs, stronger local investor alignment and better access for mid-cap or sector-specific issuers,’ Tan explains. However, companies should prioritise strategic fit over exchange prestige when selecting listing venues.
Tan advises that the chosen market should complement the company’s strategic direction, including its industry focus, geographical presence, operational base and target investor profile. ‘These foundational elements are critical regardless of the listing venue,’ he says.
Dual listings present a strategic opportunity to leverage brand
He adds that, building on these fundamentals, venue selection should be guided by sector alignment, investor base, valuation potential, regulatory compatibility and post-listing support. Companies that match well with their chosen market’s investor base typically demonstrate strong performance, with initial capital raises often attracting institutional investors across jurisdictions, he says.
Pursuing a primary listing on the home exchange is an ideal first step, according to Tay Hwee Ling, transactions accounting support leader at Deloitte Southeast Asia. ‘It enables them to leverage investor familiarity and local recognition to springboard their business via a local listing. The strategy enables listing aspirants to build on these strengths,’ she explains.
Dual listings
Once they achieve higher growth and profitability, companies can then consider expanding to international exchanges through dual listings. ‘In some cases, cross-border or dual listings present a strategic opportunity to leverage brand recognition established on their home exchange while enhancing market visibility and attracting a broader investor base,’ Tay adds.
Secondary markets can provide additional capital access opportunities, particularly when combined with a strong local identity, according to Tan. ‘In some cases, there may also be better alignment for companies and secondary markets due to investor familiarity with the business, sector or even geographical connections.’
Traditional financial hubs still offer distinct advantages
The diverse regulatory requirements across South-East Asia have long limited cross-border listings, but a growing number of companies are now exploring the opportunities on offer. The shift is facilitated by depositary receipts (DRs), which enable locally listed companies to trade on other ASEAN exchanges through overseas certificates issued by foreign institutions representing domestic shares.
In 2024, six South-East Asian exchanges agreed to establish a DR regulatory framework to expand investment options for domestic investors across ASEAN markets. Businesses have also leveraged American depositary receipts to tap into the US capital markets.
Singapore recovery
Despite the rise of emerging markets in the region, traditional financial hubs still offer distinct advantages, with Singapore leading in specific sectors. ‘Singapore remains attractive for sectors such as real-estate investment trusts, infrastructure and financial services, supported by strong institutional participation,’ Tan says.
Recent regulatory reforms by the Monetary Authority of Singapore (MAS) have sparked signs of recovery in its IPO market, according to Tay.
‘The reforms position Singapore as a credible hub for high-quality listings’
In May 2025, MAS proposed streamlined prospectus disclosure requirements and simplified processes for secondary listings, potentially reducing listing review timelines to six to eight weeks. The reforms would also permit issuers to engage with potential investors earlier and align disclosure requirements with international standards.
‘The latest tranche of measures announced by MAS to enhance the functioning of Singapore’s equities market is a positive step forward to boost investor interest here by improving trading liquidity and strengthening investor confidence,’ Tay says. ‘These reforms also position Singapore as a credible hub for high-quality listings.’
CFOs who win
However, strategic fit remains paramount for finance leaders. ‘Each jurisdiction has distinct regulatory frameworks, listing requirements and compliance obligations. These differences can materially influence the capital-raising strategy and operational readiness of finance teams,’ Tan explains.
Success in this market ultimately comes down to strategic agility and comprehensive planning, according to Smith. ‘CFOs who win will be those building market timing flexibility and maintaining readiness to move fast when windows open, rather than waiting for perfect conditions that may never come,’ he says.
