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Regional IPOs raised lowest amount in eight years despite healthy number of listings

ANN/THE STRAITS TIMES – A healthy number of companies were listed across the region in 2023, but the total amount raised is the lowest in eight years.

There have been 153 initial public offerings (IPOs) so far in 2023 on the region’s key stock exchanges – Singapore, Indonesia, Thailand, Malaysia, Vietnam and the Philippines – down from a total of 163 in 2022. No more listings are scheduled for 2023. The IPOs raised around USD5.5 billion, well below the USD7.6 billion collected in 2022, noted a study by accounting giant Deloitte.

Its analysis showed that Indonesia was the strongest regional performer, with 77 IPOs raising USD3.6 billion. This accounted for half of the region’s listings and 60 per cent of the total amount raised across the six bourses. It makes Indonesia the fourth-strongest stock exchange globally so far in 2023.

The 2023 listings have seen a trend of firms affiliated with the electric vehicle market, including those in the mining and associated ancillary sectors, and renewable energy firms.

Deloitte noted: “As countries strive to meet their climate objectives and establish carbon-neutral economies, electric vehicle firms and renewable energy companies… alongside those providing environmental solutions, are being embraced.”

The consumer industry remained among the top three sectors, as in the preceding two years, with a growing young middle class in the region armed with higher spending power.

Deloitte said: “Southeast Asian companies are thriving and have the ability to go beyond their shores for cross-border IPOs.”

Deloitte Southeast Asia advisory leader Tay Hwee Ling said Singapore companies have various fund-raising opportunities. PHOTO: THE STRAITS TIMES