A headache will send most of us to a pharmacy to buy pain relief.
A Malaysian pharmacy chain could offer a similar reprieve to private equity investors who have struggled to score exits and see their money back in Southeast Asia.
Creador-backed pharmacy Big Caring launched its IPO last week ahead of a planned November 19 listing, offering existing shareholders a chance to sell alongside the company’s issuance of new shares.
That opportunity has become harder to find elsewhere in the region.
EY data shows that 908 IPOs globally raised $290 billion in the first nine months of 2026, with proceeds surging 153% despite a 2% dip in listing volume. Southeast Asia, however, saw a fall on both counts: Its 56 IPOs raised $3 billion, down 26% in volume and 13% in value from a year earlier.
Malaysia has offered a brighter spot, leading Southeast Asia in both IPO volume and proceeds over the period, according to Bursa Malaysia. IPOs in Malaysia raised about $1.62 billion over the nine months, compared with $992 million a year earlier. Proceeds rose nearly 64%.
Big Caring will test that appetite further. And the queue behind it is growing: Asia OneHealthcare also filed a draft prospectus last week for an IPO of up to 4.38 billion shares and a planned Bursa Malaysia listing.
For companies preparing to go public, that momentum is encouraging. For investors deciding which private businesses to back next, it could help tip an investment decision.
A strong Bursa does not guarantee an exit several years from now, but in a region where getting out has become difficult, evidence that someone else can do it deserves attention.
Capital pouring into data centres is reshaping Malaysia’s competitive edge, as we explored in last week’s edition. Now, we follow the money out and ask whether a clearer path to an exit makes a stronger case for investing in the first place.
Does Malaysia’s IPO market give investors confidence to put capital to work?
Ask investors what is holding back private capital in Southeast Asia, and the conversation often circles back to exits. The difficulty of returning money to backers has become a reason to hesitate before committing more.
Malaysia offers a useful test of how much changes when the exit route looks clearer.
That gives investors something more tangible than assurances that the exit window will eventually reopen.
There is infrastructure behind that confidence, too. Malaysia’s pipeline draws on established businesses, a tiered listing framework and domestic institutional capital.
Alongside a strong IPO market is also a rising tide of confidence in equity investments. DealStreetAsia’s DATA VANTAGE figures show that Malaysia-headquartered companies ranked second to Singapore in both funding volume and value in the first half of 2026, positions previously held by Indonesia and Vietnam in 2025.
Market participants say a strong IPO market may be helping lure equity funding and make investors more willing to commit capital, but it answers only part of the equation for countries competing for their money.
We asked three market participants to share their perspectives:
“A vibrant IPO market strengthens investor confidence by providing clearer exit opportunities and allowing capital to be recycled into the next generation of Malaysian businesses. However, investors should invest in the strength of the business, not the prospect of a listing. A strong IPO market should reinforce an investment thesis, not become the investment thesis itself. Ultimately, sustainable investor confidence comes from quality companies delivering long-term value, both before and after listing.” – Victor Chua, Founding and Managing Partner, Vynn Capital
“In our experience, the importance of a strong local IPO market varies from investor to investor, depending on their priorities and investment horizons. An established IPO market can make Malaysian businesses more attractive by providing investors with a potential exit route, but it is not the only way for them to exit. Ultimately, strong business fundamentals matter more. After all, an exit route only matters if there is a valuable business to exit from.” – Yen Ming Lee, Co-founder and Chief Executive Officer of PolicyStreet
“A wider set of exit routes helps our underwriting. Bursa Malaysia has led ASEAN in IPOs this year, and the government’s push to broaden the investor base and bring more companies to market is encouraging and should deepen liquidity. As early-growth investors, we believe that exit options shape whether we invest more than what we pay.” – Jelmer Ikink, Managing Partner, Foxmont Capital
Malaysia’s listing momentum deserves a place in due diligence. But its value depends on what a business can deliver before it reaches the exchange.
How much an eventual listing influences that calculation depends on when an investor comes in.
“We price our entry valuations on historical and near-term performance; an IPO usually lies years away, and trade sales and secondaries offer other routes out,” says Jelmer Ikink of Foxmont Capital. “For late-stage investors, the calculation is a bit different: a credible local listing is closer and more certain, so they discount it less and can justify higher entry prices.” Ikink recently told DealStreetAsia that Foxmont is exploring further investments in Malaysian companies following its investment in 3cat.
At either stage, the company has to build the value that its next investors will be willing to pay for.
“A company needs to grow and build value to attract future investors and allow existing investors to exit,” says Yen Ming Lee, co-founder and CEO of PolicyStreet. PolicyStreet just raised funds earlier this year.
There is a supportive backdrop for that calculation. Malaysia’s economy grew 6% year-on-year in the second quarter of 2026 and is forecast to grow above the region’s average for the year, while September inflation was 1.8%, the lowest among the six major Southeast Asian economies. Solid growth alongside relatively contained price pressures offers an encouraging setting for businesses seeking to expand and consumers deciding what they can afford.
“Ultimately, sustainable investor confidence comes from quality companies delivering long-term value, both before and after listing,” says Victor Chua of Vynn Capital.
Malaysia’s strong IPO market can therefore give investors more confidence to put capital to work by making a future sale more credible. It can get an investment past the exit objection. But for increasingly selective investors, that is just one of many boxes to tick.
Market roundup
Vynn Capital backs battery recycler: Malaysian lithium-ion battery recycler Econili raised an extension round led by Vynn Capital, bringing its total funding to RM8 million ($1.96 million).
Sunway leads Pharmaforte bidding: Malaysia’s Sunway Group is understood to be the frontrunner in the final round of bidding for Advantage Partners’ stake in the drug distributor, which operates in Malaysia and Singapore, DealStreetAsia has learnt.
Fingular secures lending capital: The fintech group secured a $20 million credit facility from Silverstreak, with the entire amount earmarked for expanding its consumer and SME lending business in Malaysia.
Summit updates
What draws investors into Malaysia, and what gives them confidence they can eventually exit? We’re taking that conversation to Kuala Lumpur on 28 January 2027, bringing together investors, founders and industry leaders for DealStreetAsia’s Malaysia Capital and Growth Summit.
We’ll explore the questions behind the investment pitch: How far can state capital take Malaysia’s businesses? What will help homegrown companies scale? There’s more to come as we build the agenda. More panel sessions, fireside chats and keynotes will be added soon.
