In 2024 IPO (Initial Public Offering) has recorded a setback. In AsiaAlso due to slowdown in economy and markets, but A recovery is expected in 2025. of listing activities in Southeast Asian markets. This is what emerges from an analysis by Deloitte, which quantifies it. 122 IPOs were conducted. In the Far East markets in the first ten months of the year, for tomorrow 3 billion dollars This is the lowest value raised by the combination in the last nine years and compares to the 5.8 billion raised in 2023 with 163 IPOs.
A few “sensational” debuts and other factors
The decline compared to 2023 – explains Deloitte – is largely due to this. Lack of successful references. In 2024, only one IPO raised more than $500 million, compared to four such listings in 2023.
Factors troubling IPOs in Asia also contribute. Currency fluctuations, regulatory differences Between markets and Geopolitical tensionsThis affected trade and investment.
gave High interest rates They further restricted corporate lending, halting IPO activity as companies decided to delay listing.
Even Market volatility Among key trading partners has affected investor confidence, significantly postponing IPO projects, particularly those of a cross-border nature.
Malaysia bucks this trend.
It was one An extraordinary year for MalaysiaThat was against the trend compared to other Southeast Asian markets, with 46 listings $1.5 billion, the highest since 2017; While market capitalization reached $6.6 billion, more than double the previous year and the highest since 2013.
Malaysia’s IPO market has performed strongly, supported by Economic indicators positive, Political stability And by the active participation of investors, in particular Foreign investors”, explained Wong Kar Chun, Transaction Accounting Support Partner at Deloitte Malaysia.
Indonesia on the rise
Il Worst market In Southeast Asia, in terms of IPOs, it is Indonesia, which has seen a steep drop in value. 368 million Dollars, compared to 3.6 billion in 2023, the number of IPOs halved to 389 from 79 a year ago. Major companies have launched IPOs with more modest fundraising targets since 2024 is one. Election year in the country, and has been exacerbated by uncertainty Problems in global financial markets.
Outlook for 2025
Looking at the future of the IPO market in Southeast Asia, Deloitte predicts that a Reversing the trend for 2025. “Deceleration in inflation along with planned interest rate cuts could create a more favorable environment for IPOs in the coming years,” expects Ty Hei Ling, Accounting and Reporting Assurance Leader at Deloitte Southeast Asia. is.”
“Strong foundation Consumers of Southeast Asia A growing middle class and the strategic importance of such sectors Real Estate, Healthcare and Energy – he emphasizes – confirms their attractiveness to investors. As foreign investment continues to flow into the region, 2025 is set to be the year of renewed IPO activity. throughout Southeast Asia.”
