Phl IPOs to be fueled by RE listings

Optimism still surrounds the initial public offering (IPO) market in Southeast Asia despite a slow start in 2024, with more renewable energy (RE) listings seen powering up the Philippine IPO landscape.

- Richmond Mercurio

The ASEAN Exchanges, a collaboration of the stock exchanges in Southeast Asia, said investors in the region continue to exercise caution given macroeconomic uncertainties, geopolitical tensions and high interest rates.

As a result, it said that the IPO markets in the region had a subdued performance in the first half where the markets raised around $1.4 billion, down from the $5.8 billion recorded in the same period last year.

Except for Singapore, the group of exchanges said that all other countries saw a decline in proceeds raised during the semester where Indonesia had the biggest decline.

However, it said that ASEAN remains a hotbed for high-growth stocks moving forward given the expected positive economic growth in the coming years which will create a favorable environment for IPOs.

The organization also sees the availability of quality startups in the region as a factor contributing to the positive IPO market outlook.

It added that several positive capital market initiatives aimed at enhancing market efficiency and attractiveness are being implemented across the region.