Market Insights Financial Corporate Finance

Initial Public Offerings - Southeast Asia

Southeast Asia

The transaction value in the Initial Public Offerings market is projected to reach US$9.47bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -13.31% resulting in a projected total amount of US$8.21bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$52.12m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

Market

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Region comparison

Currency

Analyst Opinion

The Initial Public Offerings market in Southeast Asia is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Investors in Southeast Asia are increasingly seeking opportunities to diversify their portfolios and capitalize on the region's economic growth. They are showing a growing interest in IPOs as a way to invest in promising companies and participate in their potential success.

Trends in the market: In Singapore, the IPO market is thriving due to its reputation as a financial hub with strong regulatory frameworks. Companies in sectors such as technology, healthcare, and consumer goods are attracting substantial investor interest, leading to a surge in IPO activities. Meanwhile, in Indonesia, the market is witnessing a rise in IPOs from sectors like e-commerce and fintech, reflecting the country's growing digital economy.

Local special circumstances: In Malaysia, the IPO market is influenced by government initiatives to promote capital market development. The introduction of new listing requirements and incentives for companies to go public has boosted IPO activity in sectors like renewable energy and infrastructure. Additionally, in Thailand, political stability and economic reforms are driving IPOs in industries such as tourism and hospitality.

Underlying macroeconomic factors: The overall economic growth in Southeast Asia, supported by factors like a young and tech-savvy population, increasing urbanization, and rising disposable incomes, is creating a conducive environment for IPOs. The region's strategic location as a gateway to global markets and its ongoing efforts to enhance business competitiveness are attracting both local and foreign companies to go public. Furthermore, the availability of venture capital funding and supportive government policies are fueling the IPO momentum in Southeast Asia.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.