Global Courant
JAKARTA, INDONESIA – JANUARY 2: Citizens cross the street during rush hour in Jakarta, Indonesia on January 2, 2023.
Firdaus Wajidi | Anadolu Agency | Getty Images
According to a new report from Deloitte, the IPO market in Southeast Asia is showing promising signs despite a global IPO slowdown in the first half of 2023.
In the past six months, the Southeast Asian market saw 85 IPOs raising $3.3 billion in revenue, up from 73 IPOs in the same period last year, which raised $3.1 billion. That’s a 16% increase in IPOs and a 5% increase in revenue for the first half of 2023.
“Southeast Asia’s positive growth prospects make the region a favorite of investors as foreign direct investment inflows continue as a result of the region’s reopening, tourism industry recovery and booming domestic demand,” the report said. .
“Together, these factors have contributed to the region’s positive economic growth despite global economic uncertainties.”
There remains a sea of exciting opportunities in the regional capital markets and a healthy deal stream for investors to explore and tap into.
The increase was largely attributed to three IPOs in Indonesia that raised more than $500 million each, compared to just one blockbuster IPO – Go tothe merged entity of Gojek and Tokopedia – for $1 billion in the same period last year.
Meanwhile, the tech-heavy Nasdaq stateside hasn’t seen a notable venture-backed tech IPO since software vendor from Hashi Corp December 2021 debut.
There is a global IPO slowdown that will continue into the first half of 2023, with IPOs down 5% compared to the same time last year, an EY report revealed. Revenues were down 36% year-over-year.
Indonesia’s rising star
Indonesia raised 70% of total IPO proceeds in Southeast Asia for the first half of 2023.
The IPO market of the world’s fourth most populous nation was highlighted by three listings: nickel company PT Trimegah Bangun Persada Tbk, minerals and EV battery materials company PT Merdeka Battery Materials Tbk and geothermal power plant operator PT Pertamina Geothermal Energy Tbk.
Indonesian President Joko Widodo has taken steps to position the country as a global electric vehicle supply chain, including signing agreements with Australia to collaborate on key minerals for electric vehicle production, lithium and nickel.
It remains to be seen how Southeast Asia will weather the storm in its economic recovery.
“Indonesia has the world’s largest nickel reserves and the recent IPO of Harita Nickel (PT Trimegah Bangun Persada Tbk) is a good indicator of interest from both local and international investors,” said Deloitte.
Indonesia “appears to have its best year ever in terms of stock market earnings with 44 IPOs in 2023 H1,” according to Deloitte.
Thailand and Malaysia follow with 18 and 16 listings respectively in the first half of 2023.
“With each country’s growth-enhancing policies, stable macroeconomics and healthy demographics of Southeast Asia, coupled with the growing impact of tech-enabled entrepreneurs on investment and strong trade relationships with China, a sea of exciting opportunities continues to emerge. the regional capital markets. and a healthy deal flow for investors to explore and tap into,” said Deloitte.
However, Deloitte said it remains “cautiously optimistic about the region’s prospects” in the second half of the year.
“It remains to be seen how Southeast Asia will weather the storm in its economic recovery,” Deloitte said. The company said uncertainties such as rate hikes, problems in the banking sector and inflation continue to shake the economy.
The International Monetary Fund expects Southeast Asia’s growth to slow from 5.7% in 2022 to 4.6% in 2023. The organization cited a slight moderation in domestic demand for Malaysia and Thailand, falling commodity prices in Indonesia and Malaysia and weaker foreign demand from the US and Europe.
(TagsToTranslate)Asia EconomySoutheast Asia IPO market favored by investors amid global headwinds: Deloitte
World News,Next Big Thing in Public Knowledg
#Southeast #Asia #IPO #market #favored #investors #global #headwinds #Deloitte
