In 2024 the IPO (Initial Public Offering) have recorded a setback in Asiaalso due to the slowdown in the economy and markets, but a recovery is expected in 2025 of listing activities on South-East Asian markets. This is what emerges from an analysis by Deloitte, which quantifies in 122 IPOs were conducted on the Far Eastern markets in the first ten months of the year, for a total of 3 billion dollars of collection. This is the lowest raised value in the last nine years and compares with the 5.8 billion raised in 2023 with 163 IPOs.
Few “sensational” debuts and other factors
The decline compared to 2023 – explains Deloitte – is largely due to lack of successful quotes. In 2024, only one IPO raised more than $500 million, as opposed to four such listings in 2023.
The factors that have disturbed IPOs in Asia also contribute currency fluctuations, regulatory differences between the markets and geopolitical tensionswhich affected trade and investment.
The high interest rates they further limited corporate borrowing, curbing IPO activity as companies decided to delay listings.
Even the market volatility of the main trading partners has influenced investor confidence, significantly postponing IPO projects, especially those of a cross-border nature.
Malaysia bucks the trend
This was a exceptional year for Malaysiawhich went against the trend compared to other South-East Asian markets, with 46 listings for an amount of $1.5 billion, the highest since 2017, while the market capitalization reached $6.6 billion, more than double that of the previous year and the highest recorded since 2013.
“Malaysia’s IPO market has demonstrated strong performance, supported by economic indicators positive, political stability and by the active participation of investors, especially by foreign investors“, explained Wong Kar Choon, Transactions Accounting Support Partner at Deloitte Malaysia.
Indonesia at peak
The worst market of Southeast Asia, in terms of IPOs, is Indonesia, which has seen a heavy drop in the value of raised 368 million dollars, compared to 3.6 billion in 2023, with the number of IPOs halved to 389 from 79 the year before. Larger companies have launched IPOs with more modest fundraising goals as 2024 has been a election year in the country, and the uncertainty has been exacerbated by difficulties in global financial markets.
Outlook for 2025
Looking to the future of the IPO market in Southeast Asia, Deloitte predicts a trend reversal for 2025. “Planned interest rate cuts coupled with easing inflation could create a more favorable environment for IPOs in the years to come,” anticipates Tay Hwee Ling, Accounting & Reporting Assurance Leader at Deloitte Southeast Asia.
“The strong base consumers of Southeast Asia, the growing middle class and the strategic importance of sectors like that real estate, healthcare and energy – he underlines – confirm their attractiveness for investors. As foreign investment continues to flow into the region, 2025 is set to be a year of renewed IPO activity throughout Southeast Asia.”
