The initial public offering (IPO) market in the Asia-Pacific has been the most resilient compared with other regions, with stronger and higher growth potentials, according to the EY Global IPO Trends 2022 report released on Thursday.
This comes as the region registered the lowest decline in both IPO volume and proceeds out of the world's largest markets, including the Americas, Europe, the Middle East, India and Africa. It also accounted for 67 per cent of the total global IPO proceeds, reported The Straits Times.
As a whole, the Asia-Pacific IPO market fell 26 per cent and 31 per cent in IPO volume and size, respectively. The global average declines for IPO volume and size in 2022 were 50 per cent and 73 per cent, respectively.
In South-east Asia, there were a total of 137 IPOs raising US$6.5 billion (S$8.7 billion) in 2022, compared with 134 IPOs raising US$13.2 billion in 2021. Indonesia led the race with the highest volume of listings in the region, followed by Thailand, Malaysia and the Philippines. Singapore came in among the last with just eight IPOs recorded in 2022, with a total of US$40 million gathered.
Interestingly, some of the largest IPO issuances in 2022 were led by companies in the technology and energy segments.
Energy IPOs were driven largely by renewable energy generation, electric vehicle and green hydrogen companies, which deployed the listings as a means to raise funds for expansion, said researchers.
However, the boom for tech listings is unlikely to continue in 2023, given that the valuation of listed technology companies has been discounted in recent months, they added. Chinese electric vehicle start-up Nio is among those that led large IPO issuances.
The Asean market, in particular, is expected to face headwinds of global inflation and an environment of increasing interest rates, said the researchers, though they think the volume of larger IPOs could rise in 2023 on the back of reduced Covid-19 restrictions in most countries in the region.
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