Capital markets in the region recorded 153 IPOs and IPO market capitalisation, with companies raising around US$5.5 billion as at Nov. 15.
However, despite the healthy number, the IPO amount raised was the lowest in eight years and is down from US$7.6 billion from 163 IPOs in the full year of 2022.
Southeast Asian companies have the ability to go beyond their shores for cross-border IPOs, Deloitte said, as this due to expectations of favourable valuations, enhanced liquidity, industry comparability, and investor familiarity with certain sectors.
Correspondingly, Deloitte said stock exchanges across the globe are paying more attention to Southeast Asian companies and are setting up new initiatives or revamping existing ones to boost their appeal to attract high-growth businesses.
Deloitte also observed that there is an increasing number of companies listing on the secondary boards of Southeast Asian bourses.
Furthermore, listing on the junior boards of the stock exchanges, which cater to high-growth small and medium enterprises (SMEs), may be seen as a springboard to the Main Board for some IPO aspirants. The listed-company status may help them in their business growth expansion and further fund raising.
Deloitte said there are many SMEs in Southeast Asia with good growth potential, and a good financial ecosystem can provide these companies with the right environment to thrive and maximise this potential.
For 2023, the Energy, Resources & Industrials and Consumer industries are two of the strongest in the market, according to Deloitte.