Indonesia’s Initial Public Offering (IPO) market shone in 2023, capturing 5 out of the top 10 IPO deals in Southeast Asia (SEA) and Hong Kong, including the region's largest IPO by an Indonesian gold and copper mining company. These five Indonesian IPOs collectively raised a combined US$2.76bn, contributing to 78% of the total funds raised in the country in the year 2023.
Five IPOs on the Hong Kong Stock Exchange (HKEX) were also among our top 10 IPOs in terms of funds raised in the year 2023 despite the challenging capital market environment, where many large scale IPOs were put on hold waiting for market stabilisation.
The SEA and Hong Kong IPO markets witnessed 228 IPO deals with a total of US$11.37bn funds raised in 2023. Indonesia was the top performing country in the SEA IPO markets in terms of number of IPO deals, with 51% of the SEA IPO deals, and in terms of total funds raised accounting for 65% of the SEA IPO proceeds. Hong Kong was only second to Indonesia in terms of the number of IPO deals, with a total of 73 IPO deals in 2023. However, Hong Kong was first in terms of funds raised, accounting for US$5.94bn in 2023. Two other larger contributors in the SEA IPO markets in 2023 were Thailand with 37 IPOs and US$1.06bn funds raised and Malaysia with 32 IPO deals and US$0.79bn funds raised. The Singapore IPO market was the quietest in terms of IPO deals and funds raised, respectively at 7 and US$0.03bn in the year 2023.
Hong Kong IPO market witnessed both, a decrease in IPO deals and funds raised from the year 2021 to 2023. Where IPO deals in Hong Kong decreased by ca. 9% from the year 2021 to 2022, the decrease in funds raised in the same year was 69%. IPO Deals and funds raised in Hong Kong continued to decline from the year 2022 to 2023 at ca. 19% and 56%, respectively.
The SEA IPO market witnessed an increase in IPO deals of ca. 20% from the year 2021 to 2023, with Indonesia being the driver of this positive development. However, the funds raised in SEA decreased by 48% from the year 2021 to 2023 as a reflection of investors becoming more selective and price sensitive due to the geopolitical instability and the rising interest rates.
The outlook of the SEA and Hong Kong IPO market in the year 2024 will remain challenging in view of geopolitical tension. However, stabilising macroeconomics and an accommodating interest rate environment could propel a rebound and drive growth for the SEA and Hong Kong IPO markets. Check out our full report for further details on the outlook of 2024 for SEA and Hong Kong.
Brian Choi
Capital Market and Accounting Advisory Service Leader, PwC China
Irwan Lau
Woon Meng Tiang
Pongthavee Ratanakoses
