Singapore is top IPO market in South-east Asia in Q3: EY report
India, the US and Greater China contribute nearly 80% of the total US$48.2 billion in proceeds globally
[SINGAPORE] Singapore was the top initial public offering (IPO) market in South-east Asia in the third quarter of 2025, according to the EY Global IPO Trends Q3 2025 report.
Six deals saw US$1.5 billion raised, while Indonesia followed with eight deals raising US$478 million. Vietnam raised US$410 million from one IPO, Malaysia raised US$94 million from eight and Thailand had two IPOs that raised US$5 million.
Singapore also ranked sixth globally in terms of proceeds raised as IPO activity accelerated in the quarter. The lead was largely down to the listings of NTT DC Real Estate Investment Trust (Reit) and Centurion Accommodation Reit.
“Singapore’s push for regulatory reforms aimed at injecting liquidity into the market has led to improving sentiments and growing interest in the local bourse,” said EY’s Asean IPO leader Chan Yew Kiang.
He noted that the Republic has seen increased interest driven by pro-market reforms, adding that maintaining its reputation as a “stable, well-regulated and free market” is attracting companies amid geopolitical tensions. This is despite Singapore-based companies’ pursuit of cross-border listings in Hong Kong and the US.
Deal volumes across the globe rose 19 per cent and proceeds surged 89 per cent from Q3 2024. This was driven by monetary easing and improving market sentiment, said the report.
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However, it found that the recovery was largely concentrated in a few key regions.
Of the 370 deals listed during Q3, nearly three-quarters were from India, the US and Greater China, said EY. These three markets also contributed nearly 80 per cent of the total US$48.2 billion in proceeds. Nine of the top 10 global IPOs in the quarter came from these markets.
India’s IPO deal volume in Q3 more than trebled quarter on quarter from 45 to 146 deals, with proceeds up nearly four times at US$7.2 billion.
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Meanwhile, the US achieved its strongest IPO quarter since the fourth quarter of 2021, with filings and new share issuances surging sharply following a relatively subdued second quarter.
Hong Kong and India do well
Hong Kong and India have been particular standouts in the first nine months of 2025. The former ranked second in terms of deal proceeds in the world, with US$23.2 billion raised, while the latter recorded 254 IPOs – dwarfing even the US, which had 180 deals.
Globally, the first nine months of 2025 saw 914 IPOs raising US$110.1 billion, a “gradual recovery” in number but a more than 40 per cent growth by deal size compared with the year-ago period.
The Chinese mainland and Hong Kong recorded double-digit year-on-year growth in both deal volume and proceeds over the first nine months, driven by “strong investor appetite in strategic sectors” such as advanced manufacturing, mobility, semiconductors and electronics.
In India, the rise in the average deal size reflects “growing investor optimism” in sectors such as fintech, manufacturing and renewables, noted the report.
South Korea’s IPOs also rose in terms of number and proceeds, driven by large-cap listings and strong investor demand in technology and industrials.
In Asean, Malaysia’s “standout IPO return” contrasted with its broader market decline, driven by “niche tech listings”. This was as the region overall saw fewer but larger IPOs, reflecting the “selective timing and valuation discipline” that became apparent in Q3.
Across the first nine months of 2025, the region saw 75 IPOs raising US$3.9 billion, a 54 per cent jump in proceeds from the same period a year ago despite four fewer listings.
Post-IPO returns globally positive
The 2025 IPO cohort delivered “positive returns” across all major regions through the first three quarters, as at Sep 24.
Chinese mainland listings led by a “wide margin”, with “exceptional first-day and sustained gains” driven by strong domestic demand and policy support. IPO companies’ share prices in China increased about 146 per cent from their offer price on the first day of trading, and were up around 149 per cent in the year to date.
Asean IPOs also performed strongly, with gains building “progressively”. First-day share price gains were at about 11 per cent, but grew to around 107 per cent in the year to date.
The US and South Korea posted healthy first-day share price returns at 32.4 and 29 per cent, respectively, but had more measured follow-through at 32.7 and 43.9 per cent in year-to-date gains.
Meanwhile, Europe and Oceania lagged, with weaker performances amid macro uncertainty, though IPO companies in both regions still achieved double-digit year-to-date gains at 27.3 and 13.8 per cent, respectively.
The median net profit margin of IPO companies in Asean was at 12.8 per cent in the year to date, compared with 9.5 per cent for the whole of last year. Hong Kong IPO profitability also jumped significantly, up from 3.6 per cent to 7.3 per cent.
These compared to a global increase in median net profit margin from 7.9 per cent in 2024 to 8.4 per cent in the year to date.
South-east Asian IPOs looking up
South-east Asia’s IPO pipeline is “expected to remain strong” across diversified industries, supported by improving valuations and liquidity, said Chan.
He added: “Discussions with intermediaries and corporates also indicate that activity levels are likely to increase. Companies exploring capital market alternatives should prepare early and remain ready to act within narrow market windows as market sentiment continues to improve.”
Globally, market sentiment remains affected by ongoing tariff disputes and political volatility, despite a positive momentum.
The report stated that investors are “increasingly seeking resilient business models” that can withstand market fluctuations and deliver sustainable growth.
It cautioned that companies looking for IPOs must be ready for such volatility and guard against it through diversification.
“The transition to a new economy, marked by climate adaptation, digital transformation and geopolitical recalibration requires IPO candidates to align their equity story with macro trends, manage external risks and articulate a resilient, forward-looking strategy that resonates with investors,” said EY.
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