US$3 billion raised by S-E Asia IPOs is lowest in almost a decade: Deloitte 

SOUTH-EAST Asia’s initial public offering (IPO) market has raised a total capital of around US$3 billion as 122 companies went public in the period from Jan 1 to Nov 15, 2024.

This is the lowest total capital raised by regional IPOs in nine years, and almost half that of 2023’s US$5.8 billion raised by 163 IPOs, said professional services company Deloitte on Tuesday (Nov 19).

The lack of blockbuster listings – IPOs raising more than US$500 million – was a key factor. There was only one regional blockbuster IPO in 2024, compared with four in 2023.

Deloitte described the region’s IPO market this year as “tepid” with Malaysia as the standout performer, although its outlook for 2025 is positive.

Tay Hwee Ling, accounting and reporting assurance leader for Deloitte South-east Asia, said that the regional IPO market encountered significant challenges this year, including currency fluctuations, regulatory differences across markets, and geopolitical tensions, which affected trade and investment.

She added that high interest rates constrained corporate borrowing, which led to companies delaying public listing.

Malaysia boleh

Malaysia leads the region in the number of IPOs, total amount IPO funds raised, and IPO market capitalisation.

In the above-mentioned period, it saw a total of 46 listings, up from 32 in 2023, and the highest number since 2006. These IPOs have raised US$1.5 billion, the highest amount since 2017; and total market capitalisation stands at US$6.6 billion, more than double that of 2023 and the highest amount since 2013.

Of Malaysia’s three stock exchanges, the Ace Market fared best in IPOs, recording 34 listings this year, which is the highest since it began in 2009.

Wong Kar Choon, transactions accounting support partner, Deloitte Malaysia, noted that the performance was bolstered by positive economic indicators, political stability and active investor participation, especially from foreign investors.

Singapore saw only four IPOs, all Catalist listings, raising around US$34 million, down from six last year.

The four companies were Singapore Institute of Advanced Medicine Holdings , Food Innovators Holdings , Attika Group and Goodwill Entertainment Holding .

The Singapore Exchange also had two secondary listings, with both companies’ primary listing being on the Hong Kong Stock Exchange.

Darren Ng, transactions accounting support partner, Deloitte Singapore, said that regulatory steps to improve Singapore-based IPOs and a renewed focus on real estate investment trusts (Reits) could bolster the market next year.

He said that a Monetary Authority of Singapore-led review group could help make the listing process easier and more attractive for companies, as Singapore remains a “preferred listing destination” for Reits in Asia.

“With these favourable conditions and regulatory support, the city-state’s IPO market, particularly in the Reit sector, is set for robust growth in 2025,” he observed.

Downswing now, but upside coming?

The number of Thai IPOs decreased to 29 from 40 in 2023, although the funds raised by these listings – US$756 million – is 26 per cent of the region’s total.

Deloitte said that challenges with economic decoupling and climate change persist, but the capital market continues to grow and recover, fuelled by strong governance and political stability, and opportunities remain with a “strong pipeline” of upcoming IPOs.

Indonesia had 39 IPOs raising US$368 million in 2024, a contrast to 2023 when it was one of the strongest performers with 79 IPOs that raised US$3.6 billion.

Deloitte noted that 2024 was an election year for the country, which could have increased uncertainty along with global market headwinds. This would explain why it was smaller companies that sought listing with more conservative fundraising targets in 2024, it added.

Nine of the top 10 Indonesian IPOs by funds raised were listings from the consumer industry as well as energy and resources industry.

This reflected regional trends, with the same two industries accounting for 52 per cent of listings and 64 per cent of total funds raised in South-east Asia.

But 2025 could bring better performance for the region’s IPOs, Tay said, as expected interest rate cuts could create a more favourable environment for listings.

The region remains attractive due to its strategic importance in real estate, healthcare and renewable energy, plus a growing middle class and strong consumer base.

“As foreign direct investment continues to flow into the region, 2025 is poised to be a year of renewed IPO activity across South-east Asia,” added Tay.