Southeast Asian IPO market remains tepid in 2024, but momentum builds towards a 2025 rebound

HANOI, 19 November 2024 — For the first 10.5 months of 2024, the initial public offering (IPO) capital markets in Southeast Asia saw a count of 122 IPOs, raising approximately US$3.0 billion. While the number of IPOs remains healthy, the total capital raised has been the lowest in nine years, with a decline from the US$5.8 billion raised across 163 IPOs in 2023.

The region saw a decline in IPO activity compared to the previous year, largely due to a lack of blockbuster listings. In 2024, only one IPO raised over US$500 million, in contrast to four such listings in 2023.

Despite global economic uncertainty accentuated by significant political shifts, which has created challenges for capital markets worldwide, Malaysia has stood out as a bright spot in Southeast Asia. It leads the region in all three key metrics: number of IPOs, total amount IPO funds raised, and IPO market capitalisation.

In terms of industries, Consumer and Energy & Resources are the top two dominating the region, accounting for 52% of the total number of IPOs and 64% of the total IPO funds raised.

Consumer industry

The Consumer industry in Southeast Asia is undergoing significant transformation due to a shift in consumer behaviour, which has led to heightened competition across local, regional, and global players. This change is driven by the region’s growing GDP, which has led to an expanding and increasingly affluent middle-class with greater spending power. As income levels rise, these consumers are in a better position to make more discerning choices, opt for premium products, and seek novel experiences.

Energy & Resources industry

The Energy & Resources industry, specifically the renewable energy sector, continues to be a focal point for Southeast Asia as the region grapples with the trilemma of ensuring energy security, equity, and environmental sustainability as it transitions towards more sustainable resources while balancing the need to meet rising energy demands.

Ms TAY Hwee Ling (郑惠玲), Accounting & Reporting Assurance Leader, Deloitte Southeast Asia, (德勤东南亚会计服务与财务报告鉴证领导合伙人) commented, “Southeast Asia’s IPO market encountered significant regional challenges in 2024, including currency fluctuations, regulatory differences across markets, and geopolitical tensions, which affected trade and investment. High interest rates across ASEAN economies further constrained corporate borrowing, dampening IPO activity as companies opted to delay public listings. Additionally, market volatility among major trade partners impacted investor confidence, while varied regulatory requirements across Southeast Asian countries created complexities for companies seeking cross-border listings. Companies seeking to list overseas have to consider markets that represent a core growth segment for their business, where investors can better understand and evaluate their business model, and where many comparable companies are listed. They should also consider which market has sector-specific analyst expertise to attract investors within their sector.”

Malaysia highlights

It has been an exceptional year for Malaysia's IPO market. It has seen 46 listings in 2024 thus far– the highest since 2006 – up from 32 across the whole of 2023. The total amount raised through IPOs has stabilised at US$1.5 billion, the highest since 2017, while market capitalisation has reached US$6.6 billion, more than double that of the previous year and the highest recorded since 2013.

The ACE Market continues to dominate this year’s IPOs with 34 listings, which is the highest number of IPOs ever recorded since the inception of the ACE Market in 2009. Overall, all three Malaysia markets outperformed the previous year.

“Malaysia’s IPO market has demonstrated strong performance, bolstered by positive economic indicators, political stability and supported by active investor participation, especially from foreign investors. This has increased the vibrancy of Bursa Malaysia, which has seen encouraging oversubscription rates more than 200 times. As Malaysia enters a more stable growth phase after a turbulent few years, the economy is expected to benefit from the carryover effect of this strong momentum. With the heightened interest in IPOs by both companies and investors, as well as the impressive valuations being achieved in Malaysia, there is huge potential for Bursa Malaysia to become an attractive listing destination for regional companies,” said Mr WONG Kar Choon, Transactions Accounting Support Partner, Deloitte Malaysia.

Thailand highlights

Although the number of IPOs in Thailand has decreased compared to the previous year, with only 29 listings in 2024, the total amount of funds raised – US$756 million – represents 26% of the region’s total, placing Thailand among the top three markets in Southeast Asia.

While challenges with economic decoupling and climate change persist, the capital market continues to grow and recover, fuelled by strong governance and political stability. There are opportunities in the Thai market, with a strong pipeline of upcoming IPOs in the Consumer, Life Sciences & Health Care and Real Estate Investment Trusts (REITs) sectors.

“In 2024, Thailand’s stock market landscape and IPO listings reflect a combination of economic recovery and moderate growth. As companies seek to capitalise on post-pandemic growth, many have demonstrated resilience and future-readiness with the development of business strategies and operations which have adopted Generative AI and robotics. The regulator has also introduced initiatives to enhance market transparency and support new and growing businesses, including SMEs, further stimulating fundraising activities,” said Ms Wilasinee KRISHNAMRA, Transactions Accounting Support Partner, Deloitte Thailand.

Indonesia highlights

Indonesia’s IPO market recorded a significant decline, with 39 IPOs raising US$368 million in 2024, compared to 79 IPOs raising US$3.6 billion throughout 2023. Smaller companies have launched IPOs with more conservative fund-raising targets as 2024 was an election year in the country, with uncertainty exacerbated by global market headwinds.

Among the top 10 IPOs by funds raised, listings from the Consumer and Energy & Resources industries accounted for nine of them. Consumer product IPOs offered stability during uncertain times due to the country’s substantial consumer base. The Energy & Resources industry, along with its supporting industries, continues to be a major influence on the Indonesian IPO market this year, despite the reduction in the number of listings during the year as compared to 2023.

Ms Jasmin MARANAN, Capital Markets Advisor, Deloitte Indonesia, commented, “As the local market awaits more clarity on the fiscal and monetary policies under the new administration, economic prospects and domestic growth remain positive, driven by government-led infrastructure and digital transformation initiatives, a large consumer base, good demographic trends, and abundance of natural resources. In addition, capital market regulators are taking critical steps to further enhance market appeal and liquidity with a hope of boosting listings in 2025.”

Vietnam highlights

Vietnam saw only one IPO listing in the first 10.5 months of 2024, which raised approximately US$37 million. Remarkably, this single IPO, which is also Vietnam’s first in the Financial Technology sector, has surpassed Vietnam’s market performance for the whole of 2023 and is approximately five times larger than the average value of IPOs from 2021 to 2023.

“Vietnam’s stock market is showing signs of recovery in 2024, supported by favourable macroeconomic conditions and a low-interest rate environment. Additionally, the government has issued new regulations to improve the ratings of the Vietnam stock market to bolster investor confidence going into 2025,” said Mr Van Trinh BUI, Transactions Accounting Support Partner, Deloitte Vietnam.

Singapore highlights

Singapore saw four Catalist IPOs raising approximately US$34 million in the first 10.5 months of this year. The four listings are in the Consumer, Industrial Products, and Life Sciences & Health Care industries. SGX also saw two new secondary listings from the Hong Kong Stock Exchange: Helens International Holdings, a China-based investment holding company mainly engaged in bar operations and franchising, and PC Partner Group Limited, a manufacturer and distributor of electronic products.

Mr Darren NG (黄铭泉), Transactions Accounting Support Partner, Deloitte Singapore (德勤新加坡交易会计服务合伙人), said, “There seems to be a renewed focus on REITs in Singapore. As global interest rates stabilise, investor appetite for income-generating assets like REITs is expected to strengthen. With its established REIT framework, Singapore remains a preferred listing destination for REITs in Asia, attracting both local and international issuers looking to tap into a well-regulated market with high liquidity.”

“The Monetary Authority of Singapore has also convened a review group to assess and enhance the country’s IPO ecosystem, focusing on making the listing process more accessible and attractive for companies. This initiative is expected to encourage more diverse listings and improve market efficiency, reinforcing Singapore's status as a leading financial hub. With these favourable conditions and regulatory support, the city-state’s IPO market, particularly in the REIT sector, is set for robust growth in 2025,” Darren added.

Southeast Asia Outlook

Looking towards the future of the IPO market in the region, Hwee Ling said, “Expected interest rate cuts alongside easing inflation may create a more favourable environment for IPOs in the years ahead. Southeast Asia’s strong consumer base, growing middle class, and strategic importance in sectors like real estate, healthcare, and renewable energy remain attractive to investors. As foreign direct investment continues to flow into the region, 2025 is poised to be a year of renewed IPO activity across Southeast Asia.”

Note to editors and reporters: All data is accurate as of 15 November 2024 and does not include IPOs after 15 November 2024. The full year 2024 IPO Report will be available in January 2025.

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