According to data compiled by Deloitte, Southeast Asian companies raised $7.6 billion through 163 IPOs last year, 43% less than the record $13.3 billion raised through 152 IPOs in 2021. While the number of IPOs climbed in 2022, total amounts raised decreased, indicating that a large number of small-sized offerings occurred that year.
This is because smaller companies are persisting with their IPOs despite the current economic uncertainty, while larger companies with greater leverage are delaying their IPOs in anticipation of improved market circumstances.
The COVID-19 epidemic stimulated an influx of new retail investors interested in IPOs, resulting in a global market boom in 2021, with the United States and the United Kingdom witnessing a record amount of funds raised. The Southeast Asian capital markets likewise had a prosperous year in 2021, but progress halted in 2022, although the region weathered the crisis marginally better than the United States and the United Kingdom, with a 43% decline in proceeds compared to a 95% and an 89% decline, respectively.
Tay Hwee Ling, leader of Deloitte's Disruptive Events Advisory in Southeast Asia and Singapore, stated, "Just as the world is winning the battle against the pandemic, the reopening of the world's economies and borders has fueled a rise in global inflation from 4.7% in 2021 to 8.8% in 2022, as well as a nearly 4% increase in the federal interest rate throughout the year."
Ling stated, "Despite these macroeconomic issues, the Southeast Asia IPO market has held up quite well, and we continue to see development possibilities in our economies."
In 2022, 42 initial public offerings (IPOs) in Thailand raised a total of $3.6 billion, the most of any Southeast Asian stock exchange. After stringent COVID-19 regulations were loosened, about ninety percent of the capital raised occurred in the second half of the year. The sum raised was comparable to the amounts raised from 2017 to 2019 (about $3 billion per year), possibly indicating a return to pre-pandemic levels. In the unusual epidemic years of 2020 and 2021, more than $4 billion was raised annually.
Last year, 59 IPOs in Indonesia raised $2.4 billion, maintaining its position as one of the top two IPO markets in Southeast Asia. In 2022, PT GoTo Gojek Tokopedia Tbk (GoTo) accounted for $1.1 billion of this total, putting it at the top of the regional leaderboard. PT Global Digital Niaga Tbk (BliBli), which raised $508 million, ranked second. GoTo and BliBli join a growing number of Indonesian technology businesses that have gone public in recent years.
Last year, there were eight IPOs in the Philippines, which raised a total of $352 million. Citicore Energy REIT Corp raised $124 million in the year's largest IPO, making it the first energy-focused real estate investment trust (REIT) in the United States.
The Malaysian IPO market raised $801 million in 2022, a 138 percent increase year-over-year. This increase was fueled by the desire for companies with strong fundamentals. Specifically, the number of ACE listings more than doubled from 11 in 2021 to 26 last year, which is remarkable given the current economic scenario.
In 2022, eleven IPOs in Singapore raised $428 million, with three Special Purpose Acquisition Companies (SPAC) listings raising $389 million and eight Catalist IPOs raising US$39 million. The SPAC framework developed in Singapore about two years ago has a promising start. In Singapore, SPACs have 24 months to de-SPAC, with the option of requesting a 12-month extension. It is anticipated that successful de-SPACs will stimulate additional SPAC listings.
On the general prognosis for the Southeast Asian market in 2023, Ling stated, "When the area emerges from the epidemic mentality, there is still opportunity for rapid development in Southeast Asia. Even though IT company valuations are generally lower presently, those with excellent business fundamentals will still be able to reach optimal market valuation and benefit from the capital markets."
