KUALA LUMPUR – Capital markets across Southeast Asia recorded robust initial public offering (IPO) activity for the first 10.5 months in 2021.
Data by Deloitte as of 15 November 2021 showed that companies in Southeast Asia raised a record of US$9.8 billion from 121 IPOs this year, out-performing the full calendar year 2020.
The momentum in IPO activity continues to grow even as the region is still battling the COVID-19 pandemic, with the number of IPOs up by 6%, total funds raised rose by 39% and the total IPO market capitalisation grew by 24% compared to the 12 months of last year.
This translates to a US$ 2.8 billion increase in total IPO proceeds and increase in market capitalisation to US$ 36.1 billion in 2021.
Thailand remains the leader for raising the highest funds from IPOs in Southeast Asia for the third consecutive year, ahead of Indonesia, Malaysia, the Philippines, Singapore and Vietnam.
A stable economy, strong currency, low interest rates and consistently strong domestic liquidity contributed to the Thai bourse raising US$4.2 billion in IPO proceeds, representing 43% of total funds raised in 2021 said Wilasinee Krishnamra, Disruptive Events Advisory Leader, Deloitte Thailand.
PTT Oil and Retail Business Public Company took the top spot on the region’s leader board this year with US$1.8 billion funds raised. The Thai exchange has raised more than US$4 billion for a second consecutive year.
“IPOs continue to be a major growth driver for the Stock Exchange of Thailand (SET). This year’s IPOs are diverse, from oil groups to telecommunications, retailers and finance companies, thus appealing to a wide range of investors.
“ We expect at least 10 more IPOs in Thailand to top off an already stellar IPO year, and based on the performance of the newly listed tech companies on the Market for Alternative Investment (MAI), we should see more digital and tech companies going public in Thailand, a departure from the usual traditional companies,” she said.
In Malaysia, the number of IPOs going back to pre-COVID levels, driven by cornerstone investors, coupled with an abundance of uninvested capital, said Wong Kar Choon, IPO Leader, Deloitte Malaysia.
With rising vaccination rates in the country, there is a growing number of technology-based startups and companies looking to increase their presence and capacity to tap the capital markets.
“Malaysia’s IPO market has remained vibrant with 24 IPO listings to date. With the introduction of the Third Capital Market Masterplan by SC Malaysia, digitalisation of operations, and overall recovery of the economy from Covid-19, we are optimistic more companies will be listed in 2022.
“As we keep an eye on the macroeconomic impact of fiscal and regulatory policies, including sustainability reporting, on global markets, we expect 2022 to be a busy year,” Kar Choon added.
Indonesia scored the biggest boost from the listing of PT Bukalapak.com Tbk which raised US$1.5 billion, the second largest listing in Southeast Asia this year, said Imelda Orbito, Disruptive Events Advisory Leader, Deloitte Indonesia.
Indonesia topped the charts for the region with 40 listings in the first 10.5 months of 2021 compared to 51 listings as at end 2020.
Overall, the Indonesia Stock Exchange achieved a total fund raising of US$2.3 billion for the first 10.5 months of 2021, registering a six-fold growth from US$377 million raised in 2020.
“With the news of the government’s privatisation plan to list 14 state-owned companies, the commitment to promote fundraising alternatives for growing small and medium enterprises through the Acceleration Board and the widely-anticipated mega tech listings from the emerging tech scene in Southeast Asia, we foresee that this is just the cusp of a new era of listings,” she added.
*Note: All data is accurate as of 15 November 2021 and does not include upcoming IPOs from 16 November to 31 December 2021.