Investment & Market Trends

Malaysia has secured its position as the top performer in Southeast Asia’s initial public offering (IPO) capital market for the first half of 2025, accounting for 66 per cent of total IPO proceeds raised across the region. According to Deloitte’s Mid-Year IPO Snapshot 2025 report, the country raised US$940 million out of a regional total exceeding US$1.4 billion. Deloitte noted that Malaysia continued its strong IPO momentum from the previous year, outperforming its regional peers in three critical metrics: total funds raised, market capitalisation, and number of IPOs. Among the standout listings was Eco-Shop Marketing Bhd, a household name that debuted on the Main Market of Bursa Malaysia. The discount retail chain led Malaysian IPO fundraising with US$230 million and saw its share price climb six per cent on the first day of trading. This marks the largest IPO in Southeast Asia so far this year. Malaysia recorded 32 IPOs in the first half of 2025, placing six of them among the region’s top 10 listings. Compared to the same period in 2024, the number of listings increased by approximately 48 per cent, while IPO proceeds rose by around 109 per cent. Notably, total IPO market capitalisation surged by roughly 165 per cent. Across Southeast Asia, there were 53 IPOs in the first half of 2025, raising over US$1.4 billion with a combined market capitalisation of US$7.7 billion. This is slightly lower than the 67 IPOs recorded during the same period in 2024, which raised just under US$1.4 billion with total market capitalisation exceeding US$5.8 billion. Commenting on the outlook, Deloitte Malaysia Transactions Accounting Support partner Wong Kar Choon said the IPO market in Malaysia remains positive for the remainder of 2025. As of 30 June 2025, the country has recorded 32 listings, putting Bursa Malaysia on track to meet its full-year target of 60 listings. However, Wong cautioned that external factors could influence the market trajectory. “The recent US trade tariffs and geopolitical tensions have introduced uncertainty, and we foresee there could be an impact on the IPO market,” he said. “This situation may lead to cautious investor sentiment, with investors possibly favouring lower-risk assets in the near term.” Wong also noted that companies, particularly those reliant on exports and vulnerable to supply chain disruptions and rising costs, may opt to delay their IPO plans amid ongoing market uncertainties. -Bernama

Food Empire Holdings has announced plans to invest US$37 million to significantly expand its spray-dried soluble coffee manufacturing facility in Andhra Pradesh, India. The development, aimed at increasing production capacity by approximately 60%, is scheduled to commence in the fourth quarter of 2025 and reach completion by the end of 2027. In addition to its existing spray-dried coffee facility, the group operates a freeze-dried soluble coffee manufacturing plant in India. Food Empire has also previously disclosed intentions to establish a new freeze-dried soluble coffee facility in Binh Dinh, Vietnam, which is slated for completion in 2028. These capacity expansion projects are part of the company’s broader vertical integration strategy, designed to enhance control over the entire coffee processing value chain. This initiative supports the long-term growth of Food Empire’s branded consumer business and reinforces the group’s market-leading position in key regions. “Food Empire has enjoyed four consecutive years of record revenue growth driven by the stellar performance of our core branded consumer business,” said Sudeep Nair, Group CEO and Executive Director. “This has given us the confidence to expand our ingredients manufacturing business, which will not only position us strongly as a leading player in soluble coffee in Asia, but more importantly, serve as a vital link to support the growth of our branded consumer business as we continue to invest in brand-building activities across our markets.” Food Empire shares closed at S$1.90 on 9 July, reflecting a 2.15% increase. -The Edge

Nvidia briefly touched a market capitalisation of $4 trillion on Wednesday, becoming the first company globally to reach the milestone, underscoring its dominant position in the artificial intelligence sector and reinforcing its status as one of Wall Street’s most sought-after equities. The California-based chipmaker’s shares climbed as much as 2.8% during the session, reaching a record intraday high of $164.42, before closing up 1.80%, valuing the company at approximately $3.97 trillion. The rally continues to reflect surging investor confidence in the future of AI, a sector where Nvidia’s high-performance semiconductors are regarded as foundational infrastructure. “This highlights the reality that capital expenditure across industries is increasingly shifting towards artificial intelligence. It is clearly the direction in which technology is heading,” said Robert Pavlik, Senior Portfolio Manager at Dakota Wealth in New York. Nvidia’s ascent has been rapid. After achieving a $1 trillion market valuation in June 2023, the company has effectively tripled its worth within a year—outpacing the trajectory of both Apple and Microsoft, the only other US-listed firms with valuations exceeding $3 trillion. Microsoft currently holds the position of the second-most valuable company in the United States, with a market capitalisation of $3.74 trillion. Its shares closed 1.4% higher at $503.51. Despite a subdued start to the year, prompted by market concerns over a low-cost AI model developed by China’s DeepSeek, Nvidia has rebounded strongly—up approximately 74% from its April lows. That recovery coincided with renewed optimism around trade negotiations involving the United States, contributing to record highs in the broader S&P 500 Index. Nvidia now comprises 7.3% of the benchmark index, ahead of Apple and Microsoft, which account for approximately 7% and 6%, respectively. Nvidia’s current valuation surpasses the combined worth of all publicly listed companies in both Canada and Mexico, and exceeds the entire UK equities market, according to LSEG data. The company’s 12-month forward price-to-earnings ratio recently stood at 32—below its three-year average of 37—indicating continued appetite from investors despite its substantial growth. However, while Nvidia remains the dominant supplier of AI chips, major clients such as Amazon, Microsoft, and Alphabet are under increasing investor pressure to curtail expenditure on AI infrastructure. Meanwhile, competitors including Advanced Micro Devices are seeking to capture market share through more cost-effective alternatives. Nvidia posted first-quarter revenue of $44.1 billion, representing a 69% year-on-year increase. The company has guided for second-quarter revenue of approximately $45 billion, plus or minus 2%, and will release those figures on 27 August. Year-to-date, Nvidia shares have risen around 22%, outperforming the Philadelphia Semiconductor Index, which is up nearly 15%. -Reuters

Xiaomi Corporation is expanding its reach into the global home appliances sector, building on the momentum generated from its electric vehicle (EV) debut and longstanding disruption in the smartphone industry. The Beijing-based firm is now targeting a top-three position in the home appliance space within three years, signalling an aggressive new chapter in its diversification strategy. Following the launch of its first electric vehicle in March 2024, Xiaomi surprised many industry observers with a stronger-than-expected market entry. Now, with the EV segment projected to break even this year, the company is focusing on another sector with entrenched incumbents – home appliances. Xiaomi’s ambitions are partly buoyed by Beijing’s extensive consumption stimulus, including increased subsidies aimed at boosting domestic spending. The company’s home appliance growth figures are already gaining attention. In the first quarter of 2025, its large home-appliance segment posted nearly 114 per cent year-on-year growth. Air conditioner and refrigerator shipments surged 65 per cent, while washing machine shipments doubled, according to Xiaomi’s May filing to the Hong Kong stock exchange. Executives are reportedly aiming to secure a top-three ranking in China’s home appliance market by 2027. In 2024, Xiaomi’s large appliance revenue rose over 56 per cent – a significant outperformance compared with Midea’s 9 per cent growth, Haier’s sub-4 per cent rise, and Gree’s more than 4 per cent decline. The scale of the opportunity is considerable. Midea, China’s leading appliance maker, valued the domestic home appliance market at over 854 billion yuan (approximately US$119 billion) in 2023, representing 36.5 per cent of global market share. From 2023 to 2027, China’s market is projected to grow at a compound annual rate exceeding 5 per cent, outpacing both the United States (c.2 per cent) and Europe (1.4 per cent). Xiaomi’s global ambitions are also becoming clearer. In March 2025, the company announced plans to roll out its large home appliances internationally, focusing on connected living ecosystems. Around the same period, it opened its first retail store in Japan, with intentions to introduce refrigerators and washing machines in the second half of the year, according to local media reports. Xiaomi’s push into the sector aligns with broader government policy. Chinese authorities have earmarked 162 billion yuan of a 300 billion yuan stimulus package to subsidise purchases of home appliances, smartphones and EVs – doubling last year’s figure. These measures contributed to retail sales of consumer goods reaching 4.1 trillion yuan in May 2025, a 6.4 per cent year-on-year increase. Home appliance sales alone surged 53 per cent. Nonetheless, concerns remain regarding the sustainability of this growth. Analysts have cautioned that subsidies may be front-loading demand, creating uncertainty about future momentum. HSBC, in a recent note, adopted a “slightly more conservative” outlook for Xiaomi’s Internet-of-Things division in the second half, though it acknowledged the segment’s resilience and flagged potential for further government support. Despite Xiaomi’s rapid ascent, its market scale still trails major incumbents. S&P Global Ratings estimated the company’s large appliance revenue at 20.8 billion yuan in 2024 – less than 10 per cent of Haier’s, under 6 per cent of Midea’s, and below 14 per cent of Gree’s. Historically reliant on online distribution, Xiaomi is actively building a stronger offline presence. As of March 2025, the company operated over 16,000 stores in China, with a target of reaching 20,000 by the end of next year. “Xiaomi is likely to grow its market share over time, but we do not expect it to pose a material threat to incumbents like Midea and Haier, who have a proven track record in premium product development and global expansion,” said Dan Baker, Senior Equity Analyst at Morningstar. S&P’s Cathy Lai noted that Xiaomi is expected to win market share from smaller, low-end rivals with weaker distribution networks. However, she pointed out that the company still lacks key advantages in supply chain depth and in-house manufacturing. Unlike competitors Midea, Haier and Gree – all of which operate integrated manufacturing and research facilities – Xiaomi continues to outsource most of its large appliance production. Still, recent moves suggest change is underway: the company has established its own factory to support future growth and cost efficiency. “Over the long term, if Xiaomi builds out its manufacturing capabilities and sharpens its product differentiation, it could significantly improve its competitiveness,” Lai added. Xiaomi’s brand strength remains a core asset, particularly among younger consumers. Chris Pereira, CEO of Singapore-based brand consultancy iMpact, highlighted the company’s narrative-driven marketing as a differentiator. “Xiaomi has succeeded in positioning home appliances as part of a broader smart living experience,” Pereira said. “While legacy players dominate in supply chain and product credibility, Xiaomi’s storytelling, fast product iteration, and community-driven approach offer it a strong platform to challenge across the consumer electronics landscape.” -SCMP

FWD Group announced on 4 July that its Hong Kong and international share offerings have both been significantly over-subscribed, in a strong show of investor confidence ahead of its listing on the Hong Kong Stock Exchange (HKEX). The Hong Kong public offering attracted 61,689 valid applications, representing demand for approximately 339.2 million shares. This equates to around 37.1 times the 9.1 million shares initially made available under the Hong Kong public tranche. Given that the over-subscription exceeded 15 times but remained below the 50-times threshold, FWD has reallocated 18.3 million shares from the international offering to meet local demand. As a result, the final number of shares under the Hong Kong public offering has increased to 27.4 million, representing 30% of the total shares available under the global offering, prior to any exercise of the over-allotment option. The international tranche was similarly well received, resulting in an over-allocation of 13.7 million shares and attracting participation from 129 placees. Following the reallocation, the total number of international offer shares stands at 63.9 million. Consequently, FWD has granted the over-allotment option to the international underwriters, which allows the joint representatives to purchase up to an additional 13.7 million shares to cover any over-allocation. This option is exercisable at any point from the effective date of the international underwriting agreement until 30 days after the close of applications under the Hong Kong public offering. FWD had previously announced on 26 June its intention to offer 91.3 million shares at an indicative offer price of HK$38 (approximately US$6.16) per share. This followed the company’s re-filing to list on the HKEX in May this year. Should the over-allotment option be fully exercised, FWD is expected to raise gross proceeds of approximately HK$3.99 billion (US$512 million). In the absence of this exercise, the group anticipates gross proceeds of around HK$3.47 billion (US$445 million). FWD shares are scheduled to begin trading on the HKEX on 7 July, with a board lot size of 100 shares. -The Edge

The Straits Times Index (STI) climbed to a new peak of 4,019.57 points just before the market closed on 3 July, marking the second consecutive session in which the benchmark set fresh highs. Building on the momentum from 2 July—when it closed above the 4,000-point threshold for the first time at 4,010.77—the STI remained firmly above this psychological level throughout Wednesday’s trading. It reached an intraday low of 4,001.84 around 2pm before rallying further in the late session. The index ended the day at 4,019.57, up 0.22% from its opening level of 4,009.33. Among the 30 constituent stocks, DFI Retail Group led gains with a 4.98% increase. City Developments and Hongkong Land followed, advancing by 2.23% and 1.74% respectively. Conversely, UOL Group—previously the top performer—fell 1.19%. Keppel DC REIT and Singtel also registered declines of 0.86% and 0.77% respectively. The STI began the week at 3,970.09 points on 30 June. The latest milestone surpasses the previous record of 4,005.18 points, which was achieved on 28 March. That day also marked the index’s first historic breach of the 4,000-point level, although it subsequently closed lower at 3,972.43. The STI later faced significant volatility, dropping to a 2025 low of 3,372.38 on 9 April following concerns over former US President Donald Trump’s proposed “Liberation Day” tariffs. Although these tariffs were later deferred by 90 days to 9 July, the announcement initially triggered investor caution. Market sentiment has since rebounded, with analysts forecasting further upside. In remarks made during a media briefing on 27 June, OCBC Investment Research’s Singapore strategist Carmen Lee stated that the STI has a “slightly good chance” of reclaiming the 4,000-point mark in the second half of 2025. Lee has set a 12-month target range of 4,060 to 4,280 for the index. -The Edge

Vietnam’s economy recorded robust growth of 7.52% in the first half of 2025, its highest mid-year performance in more than a decade, according to the General Statistics Office (GSO). The announcement comes shortly after Hanoi successfully negotiated a reduction in threatened US tariffs on Vietnamese exports, mitigating potential headwinds to its export-driven economy. The second quarter of 2025 saw a year-on-year GDP expansion of 7.96%, representing the strongest second-quarter growth since 2022, when the figure peaked at 8.56%. The government has set a full-year growth target of no less than 8%. “The country’s socio-economic performance in the second quarter and the first six months of 2025 achieved very positive results, approaching the set target in the context of many uncertainties in the world and regional economy,” the GSO noted in its official release. The latest growth data follows a bilateral trade agreement with the United States announced earlier this week. Under the deal, Vietnam secured a significant reduction in prospective US tariffs, lowering them from a proposed 46% to a minimum rate of 20%, in exchange for expanded market access for American goods. Vietnam currently holds the third-largest trade surplus with the United States, following China and Mexico. The high surplus had placed the country among the primary targets of the US administration’s tariff initiatives. -AFP