Southeast Asia's IPO market fell drastically in the first half, but AI listings could revive it

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IPO market capitalization in Southeast Asia dropped 71% year on year to $5.8 billion in the first six months of 2024, a Deloitte report showed.

The number of listings slid 21.2% year on year to 67, while the amount raised from these IPOs dropping 53.3% year on year to $1.4 billion, a Deloitte report showed."While Southeast Asia's IPO market may appear subdued in 2024, there is cautious optimism that conditions will improve beyond 2024," said Tay Hwee Ling, Deloitte's Southeast Asia accounting & reporting assurance leader.

There were no blockbuster IPOs from January to June, with only one large IPO with market capitalization of more than $1 billion and raising more than $200 million, Deloitte said. In the same period a year ago, there were three large IPOs which raised more than $600 million each. Still, the report pointed out that historically, the latter half of the year"has always been the better performing half between 2020 to 2022.

Against this backdrop, investors geared toward"proven profitability and sustainable cash flows" instead of the growth-at-all-cost business model that many companies adopted from 2020 to 2022., experienced a significant decline in the first half of 2024, as investors and IPO aspirants adopted a wait-and-see approach in light of theMarket capitalization of Indonesian listings plunged 92.2% to $1.22 billion from January to June while IPO proceeds raised fell 89.

 

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