Southeast Asian companies are increasingly seeking foreign markets for initial public offerings as domestic exchanges face persistent underperformance. Singapore, Malaysia, and Indonesia have seen their stock markets lag behind global peers, pushing local businesses to look abroad for better valuations and investor interest.

Several high-profile companies have already made the move, with Grab choosing the US market for its SPAC merger in 2021. The trend reflects broader challenges in the region, where market volatility and regulatory hurdles have dampened IPO activity. Local exchanges are struggling to attract both listings and investor capital, creating a vicious cycle of underperformance.

Industry experts point to structural issues including limited institutional investor bases and less sophisticated trading infrastructure compared to developed markets. The shift overseas represents both an opportunity for regional companies to access deeper capital pools and a warning sign for Southeast Asian financial centers. Hong Kong and New York have emerged as preferred alternatives, offering greater liquidity and more diverse investor bases.