Southeast Asia a Hotspot for IPOs, Witnesses 43% increase from 2022

Southeast Asian stock exchanges are seeing an increase in initial public offerings. While global IPO proceeds fell by 30% year on year from January to June, they increased by 40% in Southeast Asia. Companies focused on domestic demand, such as real estate and food products, as well as resource companies dealing with renewable energy, stood out – but not tech companies, which are facing deteriorating market conditions in the United States and Europe.

Sources examined IPO data from Southeast Asia using Dealogic, a financial market platform. From January to June 2023, IPOs raised $4.1 billion, a 43% increase over the same period last year, and the number of IPOs increased by 14% to 79.

Since 2019, before the impact of the COVID-19 pandemic, both the number of IPOs and the amount raised have been increasing. While still small in comparison to the United States and Europe, they have increased in value by approximately 80%.

Amman Mineral International, a copper and gold miner that went public on the Indonesia Stock Exchange on June 19, raised the most money at the time of its IPO, totaling more than $700 million. A portion of those funds will be used to invest in copper and precious metal refining.

Indonesia had 41 IPOs, accounting for more than half of the total in Southeast Asia, and the top four fundraisers were Indonesian firms. Each is seizing new demand from EVs and other industries.