The SEA IPO capital market saw 67 deals in the first half of 2024, with US$1.4 billion in proceeds raised.
The Southeast Asia initial public offering (IPO) capital market saw 67 deals in the first half of 2024, with US$1.4 billion ($1.89 billion) in proceeds raised. Compared to the same period the year before, IPO deals in 1H2024 marked a 21% decrease while the amount raised fell by 59% y-o-y. These findings were in Deloitte’s 2024 Southeast Asia Mid-Year IPO Snapshot report published in July.
The market capitalisation for IPOs in 1H2024 came up to US$5.78 billion for the region, marking a sharp 71% drop from the market capitalisation of US$20.09 billion in 1H2023.
The decrease, which highlights a “lukewarm regional IPO outlook”, is due to the lack of blockbuster IPOs in the 1H2024. During this time, Southeast Asia only welcomed one large IPO, which raised over US$200 million, compared to three large IPOs which raised over US$600 million each in the 1H2023.
Among the Southeast Asian countries, Indonesia saw the highest number of IPOs with 25 listings raising US$248 million. This, however, stood in contrast to the country’s 44 IPOs in the year before, raising US$2.28 billion.
Malaysia saw the highest amount of proceeds raised at US$450 million with the second-highest number of IPOs with 21 listings.
Thailand came in second with US$427 million raised. The country saw the third-highest number of IPOs with 17 listings.
In the first half of 2024, the top 10 IPOs were from Thailand, Malaysia, Indonesia, Vietnam and the Philippines, which contributed US$848 million or 62% of the total amount raised.
Thailand’s Thai Credit Bank Public Company Limited raised the highest amount at US$208 million while the Philippines’ OceanaGold (Philippines), Inc. came in next with US$104 million in proceeds. Malaysia’s life sciences and healthcare group Alpha IVF Group Berhad rounded up the top three placements with US$94 million raised.
Singapore saw one IPO in the 1H2024, Singapore Institute of Advanced Medicine Holdings, which raised US$20 million. The city-state saw three IPOs in 1H2023 with US$21 million raised then.
According to Deloitte, the second half of the year has historically been the better-performing half between 2020 to 2022. But it has seen a downward trend between 1H2023 to 1H2024, signalling subdued IPO market sentiments on the back of macroeconomic factors such as the geopolitical climate, high-interest environment and reduced liquidity.
There has also been a shift in investors’ preference towards companies with proven profitability and sustainable cash flows over the growth-at-all-cost model.