SEA's IPO Market Lucrative, says Deloitte

Despite global economic uncertainty, Southeast Asia's (SEA) initial public offering (IPO) has remained consistent, according to a recent report from Deloitte.

With an IPO market capitalization of $20.1 billion, the region's market saw 85 IPOs in the last six months, raising $3.3 billion in proceeds.

Comparatively, the 73 initial public offerings (IPOs) during the same time period last year raised $3.1 billion, with a market capitalization of $35.4 billion.

The first half of the year saw a 16 percent increase in new IPOs and a 5 percent increase in IPO proceeds when compared year over year.

Deloitte claims that the three sizeable Indonesian IPOs that each raised more than $500 million in the first half were largely responsible for the growth, as opposed to just one huge IPO that raised $1 billion a year earlier (PT GoTo Gojek Tokopedia Tbk).

Due to PT GoTo Gojek Tokopedia's extraordinarily high market capitalization of $27.5 billion in the first half of 2022, there was a significant drop in market capitalization of 43%, though.

Three initial public offerings (IPOs) were held in Singapore in the first half, raising a total of SGD 28 million ($20.77 million) and an IPO market capitalization of SGD 137 million ($102 million).

With nine IPOs and SGD 572 million ($424 million) in proceeds raised during the first half of 2022, and an IPO market capitalization of SGD 790 million ($586 million), this was a 95 percent decrease in proceeds raised from that period.

With 44 IPOs in the first half, Indonesia appears to be on track to have its best year ever in terms of listing proceeds.

These include the IPOs of a nickel miner that raised about $683 million, an EV battery materials company that raised about $627 million, a geothermal power plant operator that raised about $594 million, and an EV wholesaler that raised about $58 million.