Despite funds raised through initial public offerings (IPO) in South-east Asia have fallen to a nine-year low, the region’s capital markets seem to remain optimistic.
There have been 122 IPOs in 2024 so far on the region’s key stock exchanges, comprising Singapore, Indonesia, Thailand, Malaysia, Vietnam and the Philippines, whereas year 2023 saw 163 IPOs.
According to Deloitte, the 2024 listings until 15 November have raised US$3 billion, compared to the US$5.8 billion raised in 2023.
Deloitte’s Southeast Asia accounting and reporting assurance leader Tay Hwee Ling says the region’s IPO market encountered “significant regional challenges” in 2024, including currency fluctuations, regulatory differences between markets, and geopolitical tensions, all of which affected trade and investment.
”But expected rate cuts and Southeast Asia’s strong consumer base, growing middle class and strategic importance in sectors like real estate, healthcare and renewable energy, will create a “more favourable” environment for more IPOs in the years ahead, Ms. Tay says.
Malaysia has been the strongest performer in the region this year, with 46 IPOs raising a total of US$1.5 billion, the highest in six years.
Indonesia’s IPO market has declined, with 39 IPOs so far in 2024, compared with 79 IPOs in 2023.
Source: The Straits Times
