Funds raised via regional IPOs at 9-year low, but Outlook positive

Deloitte sees expected rate cuts among factors creating a 'more favourable, climate

- Timothy Goh

Funds raised through initial public offerings (IPO) in South-east Asia have fallen to a nine-year low, but the outlook for the region's capital markets is nevertheless optimistic.

There have been 122 IPOs in 2024 so far on the region's key stock exchanges, comprising Singapore, Indonesia, Thailand, Malaysia, Vietnam and the Philippines, down from a total of 163 for the whole of 2023.

The 2024 listings raised a total of US$3 billion (S$4.01 billion), a notable decline from the US$5.8 billion raised in 2023, according to a report by professional services firm Deloitte.

The statistics for 2024 do not include IPOs after Nov 15.

Deloitte South-east Asia accounting and reporting assurance leader Tay Hwee Ling said the region's IPO market encountered "significant regional challenges" in 2024, including currency fluctuations, regulatory differences between markets, and geopolitical tensions, all of which affected trade and investment.

"High interest rates across Asean economies further constrained corporate borrowing, and dampened IPO activity as companies opted to delay public listings."