The Asia-Pacific region has seen a notable turnaround in the IPO market in the third quarter of 2024, according to Ernst & Young.
By overcoming earlier declines, Asia-Pacific has contributed to an 11% quarter-on-quarter increase in global IPO numbers. This rebound, EY says, was marked by increased activity in mainland China, Indonesia, Malaysia and South Korea and has brought in confidence into the global market amid times of heightened uncertainty.
The region, year-to-date, saw a total of 94 IPOs raising US$2.5b, down from 127 IPOs raising US$4.9b.
In Q3 2024 alone, there were 28 IPOs with proceeds totaling US$1.1b, representing a surge in proceeds of 100% from the previous quarter that saw 29 deals totaling US$0.6b. According to EY, this was primarily driven by the prominent listing of 99 Speed Mart Retail Holdings Bhd. from Malaysia, which stood as the second-largest IPO in the region in YTD 2024.
Across ASEAN, other active exchanges in YTD 2024 include Indonesia (34 IPOs raising US$0.3b), Thailand (22 IPOs raising US$0.6b), Philippines (3 IPOs raising US$0.2b). Singapore and Sri Lanka each had one IPO that raised US$19.5m and US$1.5m respectively.
"With interest rates easing and companies gearing up for growth in the region, IPO activities are expected to pick up in the next quarter and year ahead," says Chan Yew Kiang, EY Asean IPO Leader.
"Strong fundamentals and demands, together with regulators increasingly exploring policies to support growth companies to tap the capital markets for growth, also bodes well for the markets. We should also expect growing interest in cross-border listings as companies seek to achieve brand equity in other markets that they are venturing into."
