IPO Newsletter Issue 1/2024

We are pleased to extend greetings as we begin the journey into 2024. We are delighted to present the first newsletter of the year, which provides an overview of the IPO performance across the Southeast Asia region for the year, with an in-depth look at each country's key highlights.

Looking back at 2023, IPO capital markets across Southeast Asia produced 163 IPOs, similar to 2022. The region raised US$5.8 billion during the year, a 24% year-on-year decline compared to the US$7.6 billion raised in 2022. Indonesia emerged as the regional leader with 79 IPOs that collectively raised US$3.6 billion, followed by Thailand with 40 IPOs raising US$1.3 billion.

With the region anticipating high GDP growth, contributing to an affluent and empowered middle-class demographic, it is not surprising that the consumer industry has consistently asserted its presence among the top three industries in the past three years.

However, a lower-than-expected demand and tourist arrivals have downgraded Thailand's economic recovery, coupled with subdued export levels and high household debt impacting purchasing power. The Bank of Thailand predicted that the Thai economy would grow only 2.4% in 2023 and increase to around 3.2% or 3.8% in 2024, depending on the inclusion of the Digital Wallet scheme. Thailand’s own volatile economy, slower growth in other economies, spillover effects from geopolitical conflicts, direction of private investment, and high household debt are crucial factors for economic recovery.

We hope you will find this newsletter an insightful read, and we look forward to connecting and discussing some of these issues in greater detail with you. In the meantime, don't hesitate to contact us with any questions.
 

Featured highlights

Southeast Asia IPO Capital Market | 2023 Full Year Report

Southeast Asian companies are thriving and have the ability to go beyond their shores for cross-border IPOs. This trend is fueled by the anticipation of favourable valuations, enhanced liquidity, industry comparability, and investor familiarity with certain sectors. Consequently stock exchanges across the globe are paying more attention to Southeast Asian companies and are establishing new initiatives or revamping existing ones to improve their appeal as gateways to attract these high-growth businesses.

Thailand's Economic Outlook 4Q2023

Thailand's 2023 GDP growth is mainly contributed by international tourism, household consumption, private investments, and slowdown in import. Lower economic recovery than expected, higher interest rates leading to increased debt burden for specific groups and falling prices of some agricultural products all contributed to a decline in the Consumer Confidence Index.