Home Business Southeast Asia’s IPO market is ‘nonetheless sizzling,’ Thailand is main the way in which
Business - June 16, 2021

Southeast Asia’s IPO market is ‘nonetheless sizzling,’ Thailand is main the way in which

Signage for the Inventory Change of Thailand (SET) is displayed outdoors the bourse in Bangkok, Thailand, on Monday, Oct. 26, 2020.

Taylor Weidman | Bloomberg through Getty Photographs

Thailand may see a file variety of IPOs this yr, says Dealogic’s Ken Fong.

Information reveals it has been a standout in Southeast Asia’s public itemizing house.

“Thailand is doing rather well. It continues the nice development from final yr,” stated Fong, head of fairness capital market analysis for Asia-Pacific at Dealogic.

The offers to date this yr have totaled $2.92 billion in worth, in line with Dealogic information.

With no purpose for the present development to cease, Thailand’s IPO house now seems “on monitor to have a file yr,” the analyst added.

The Southeast Asian nation normally sees about 30 public listings annually, and information confirmed most normally come within the latter half of the yr, he informed CNBC in a name. “Roughly 70-80% of the exercise comes from This fall and Q3 yearly.”

Thus far this yr, Thailand has seen 14 listings — about half the annual degree, Dealogic information confirmed. The quantity raised by this yr’s IPOs has already surpassed the annual full yr common of $2.8 billion, in line with Fong.

Elsewhere within the area, the Philippines has additionally seen a comparatively sturdy efficiency in its IPO market, following the debut of meals and beverage agency Monde Nissin — described by Fong because the “largest” public itemizing on file within the nation.

In Malaysia and Singapore, nevertheless, the itemizing scene has been “relatively quiet,” he added.

‘Very excessive one-day pop’ for some IPOs

Covid-19 has ravaged via a lot of Southeast Asia as their respective governments battle to acquire enough vaccines to inoculate their residents.

However the influence of the resurgence of the pandemic is “not likely seen” within the IPO house, Fong stated.

“From our information I do not likely see that Southeast Asia is just too weak. We take a look at the aftermarket efficiency and truly a lot of the nations have a really excessive one-day pop,” he stated referring to a powerful debut on the primary day.

Fong cited two IPOs in Thailand as examples.

PTT Oil and Retail Enterprise went public in February and gained about 62.5% on the primary day of buying and selling. Thai insurance coverage dealer Ngern Tid Lor additionally jumped about 25% from the IPO worth on its debut day.

Each corporations have been amongst three that listed in Southeast Asia this yr which were valued at greater than $1 billion every, he added.

At a time when the market is “nonetheless sizzling,” Fong stated, “these mega IPOs simply assist encourage different … corporations to record.”

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