Once a global hotspot for initial public offering (IPO) activity, Southeast Asian (SEA) markets have been experiencing a sustained decline in IPO activity. This downturn began after 2021, a blockbuster year for IPOs when approximately $13.4 billion was mobilised by companies through fresh listings. However, since then, fund mobilisation through IPOs has been on a downward trajectory, with $7.6 billion raised in 2022 and $5.8 billion in 2023.
This trend continued into 2024, marking a nine-year low of funds raised through this route. As per industry reports, in 2024, SEA recorded a total of 136 listings raising approximately $3.6 billion, a decline of around 18 per cent in the number of issuances and around 38 per cent in funds raised compared to 2023. The average listing size has also dropped to a 19-year low, further bringing down overall market performance. This is primarily due to the absence of large listings exceeding a size of over $500 million, unlike in the previous years. For instance, in 2023, Pertamina Geothermal Energy raised around $595 million and Amman Mineral Internasional raised $710 million.
As per industry reports, until November 2024, the major sectors driving IPO activity in the region were consumer-focused sectors, followed closely by the energy and resources sector.
Several domestic and global factors along with already unfavourable market conditions have led to the record-low IPO performance in 2024. Macroeconomic conditions such as high interest rates have constrained corporate borrowing, which has led many companies to postpone going public. Further, high inflation and currency fluctuations have partly played a role in affecting investor confidence. Additionally, ongoing geopolitical conflicts – including the Russia-Ukraine war and tensions in the Middle East – led to a more cautious investor approach, affecting trade and investment.
General elections in the US and other key trade partner nations, along with elections in Indonesia – a major IPO activity hub in the region – have also contributed to the tepid IPO performance in the region.
Mapping the country-wise IPO performance
Malaysia
Amid a challenging year for new issuances across the region, Malaysia recorded a historic growth in IPO activity. The country’s share of new issuances by volume and funds raised in the region stood at nearly 40 per cent and 47 per cent respectively. To some extent, this remarkable performance contributed to stabilising the overall IPO performance in the SEA region.
In 2024, Malaysia recorded 55 listings compared to 32 in 2023. The funds mobilised more than doubled, reaching approximately $1.7 billion, up from $0.8 billion in the previous year. This extraordinary growth
is partly attributed to government’s economic policies and regulatory changes such as the reduction in the time for IPO approval to three months, reduction in stamp duty and the enabling of fractional share trading. Further, the government introduced the New Investment Incentive Framework under the budget 2025 to promote foreign direct investment (FDI).
The industrial products and services sector attracted the highest number of IPOs with 23 listings. Malaysia also had some key large IPOs in the region. Among these is the Prolintas Infra Business Trust, the country’s first highways business trust IPO, which raised RM 445.3 million ($0.1 billion) in its March 2024 IPO, securing a position in the top 10 IPOs in the region. In April 2024, Keyfield International Bhd, an oil and gas services company, listed on the stock exchanges, raising RM 188.1 million. Similarly, in August 2024, Elridge Energy Holdings Bhd, a manufacturer and trader of biomass fuel products, raised RM 101.5 million.
Indonesia
Over the years, Indonesia has maintained a significant share in IPO activity in the region; however, 2024 turned out to be an exception. The share of the volume of IPOs and funds raised dropped drastically to 41 IPOs raising $0.9 billion, compared to 79 IPOs raising $3.6 billion in the previous year.
The decline could be partly attributed to the wait-and-watch approach of stakeholders because of the presidential elections that year, along with prevailing unfavourable market conditions. Further, as per industry experts, Indonesia has over the years become an attractive destination for private investors, including venture capital/private equity firms, that provide easy access to funds to companies. This is an attractive option for companies as an IPO offer is a cumbersome and costly process.
Indonesia witnessed one of the largest IPOs in the region for the year in the mining sector in December 2024 with PT Adaro Andalan Indonesia Tbk, a company operating in the coal industry, raising IDR 4.32 trillion ($0.27 billion). Earlier, in May 2024, PT Xolare RCR Energy TBK, a company engaged in asphalt trading and processing and construction services, raised IDR 72.19 billion. Additionally, in February 2024, PT Ancara Logistics Indonesia Tbk, a mining service and sea shipping logistics provider, raised IDR 860.92 billion ($0.05 billion).
Thailand
In 2024, Thailand saw 32 companies debut the stock market, which places it as the third-largest market in the region by volume and proceeds raising approximately $0.8 billion. IPO activity in the country reflected the overall trend in the region, with a not-so-encouraging year for fresh listings. The number of fresh issuances declined by 20 per cent from 40 IPOs in 2023 and the proceeds declined by close to 40 per cent from $1.3 billion raised in the previous year.
The revised Thai Financial Reporting Standards (TFRS) were introduced in 2024 to enhance the quality of the listings and boost investor confidence in the long run. However, the new regulations contributed towards subdued IPO activity in the country, which now requires companies to present three years of audited financial statements prepared under the TFRS. The increased compliance requirements have led to a comparatively tepid performance. The majority of the IPOs in 2024 were from agriculture and the consumer products industry. However, in April 2024, BPC Technology PCL, a fibre optic network, main distribution board and solar rooftop solution provider, raised THB 210.6 million.
Singapore
Over the years, IPO activity in Singapore has declined drastically, from around $1.2 billion raised in 2021 to $0.03 billion in 2023 and 2024. In 2024, the Singapore Exchange witnessed four listings raising $34 million, compared to six listings in 2023 raising $35 million. However, cross-border listing is gaining significant traction in Singapore with 16 listings on US exchanges recorded in 2024. The significant decline in funds raised through IPOs is due to the absence of real estate investment trust (REIT) listings between 2023 and 2024, which have traditionally been a key contributor.
Future outlook
IPO activity is expected to regain momentum in 2025 as macroeconomic, political and geopolitical factors stabilise. Across global markets, there has been a decline in interest rates along with easing of inflation. SEA countries such as Indonesia and Thailand have already announced a policy rate cut, which is expected to drive economic activity and further encourage companies to revive their IPO plans. Additionally, stock exchanges in the region are also putting efforts to enhance governance frameworks and boost overall market participation which is expected to revive the market in the coming years.
