The Asia-Pacific region recorded a lag in IPO activities in 2024, according to EY.
APAC saw a continued downward trajectory, which began in 2021, declining 35% in deals and 51% in proceeds year-over-year (YOY), although the second half of the year had a greater performance compared with the first half.
A total of 129 deals (down 21% YOY) raising US$3.6b (down 38% YOY) was recorded for Asean, as exchanges that were the most active in the year were Malaysia (49 IPOs raising US$1.7b), Indonesia (41 IPOs raising US$921m) and Thailand (31 IPOs raising US$808m). Exchanges in Singapore and the Philippines hosted four and three IPOs, raising US$31.4m and US$197m, respectively.
"High inflation and elevated interest rates deterred public listings, while slower economic growth globally, together with national elections in numerous countries, have introduced uncertainties and dampened IPO activity," says Chan Yew Kiang, EY Asean IPO Leader.
He says the absence of large IPOs added to the muted performance with average deal size dropping to a 19-year low.
"However, Malaysia and Indonesia continue to draw interest; Malaysia saw a near-20-year high in IPO launches while Indonesia is increasingly an attractive destination for foreign private equity and venture capital firms. In Singapore, government reforms to revitalize the stock exchange are expected to boost IPO activity."
Chan adds that with interest rates easing and companies gearing up for growth across Asean, IPO activities are expected to pick up in 2025.
"Strong fundamentals from IPO aspirants, combined with regulators’ support toward growth companies to tap the capital markets for growth, bode well for the markets. Additionally, we can expect growing interest in cross-border listings as companies seek to achieve brand equity in other markets that they are venturing into."
In 2024, EY found that public listings of private equity (PE) and venture capital (VC) backed portfolio companies generated 46% of total global IPO proceeds, highlighting their substantial contribution to global IPO activity and reinforcing the critical role of PE and VC firms in shaping the IPO landscape.
Out of the 20 mega IPOs in 2024, 12 were PE-backed, a significant increase from the two listed last year. There were also 18 unicorn IPOs listed in 2024, half of which were launched by VC firms, up from just three in 2023.
EY says technology, media and telecommunications (TMT), industrials and consumer sectors dominated global IPOs, with an approximately combined 60% share across all sectors by both number and proceeds.
