Southeast Asian IPO market is led by “still hot” Thailand

The Stock Exchange of Thailand (SET) sign will appear outside the Stock Exchange in Bangkok, Thailand, on Monday, October 26, 2020.

Taylor Wademan | Bloomberg via Getty Images

Thailand was able to see a record number of IPOs this year, says Ken Fong of Dealogic.

The data show that it stands out in the public list space in Southeast Asia.

Fong, Head of Asia Pacific Equity and Capital Markets Research at Dealogic, said:

So far this year, the total transaction value has been $ 2.92 billion, according to Dealogic data.

Analysts added that Thailand’s IPO space appears to be “on track for a record year” for no reason to stop the current trend.

Southeast Asian countries usually look at about 30 public lists each year, indicating that the data most often come later in the year, he told CNBC over the phone. “Approximately 70-80% of our activity comes from the 4th and 3rd quarters of each year.”

So far this year, there are 14 lists in Thailand, according to Dealogic data. This is about half the annual level. According to Fong, the amount raised by this year’s IPO has already exceeded the annual average of $ 2.8 billion.

The Philippines has also performed relatively well in the IPO market elsewhere in the region, following the debut of food and beverage company Monde Nissin.

But in Malaysia and Singapore, the listing scene was “quite quiet,” he added.

“Very expensive day pop” for some IPOs

Covid-19 is devastated in much of Southeast Asia as each government struggles to get enough vaccine to inoculate its citizens.

But the impact of the pandemic revival is “not really visible” in the IPO space, Fong said.

“Our data doesn’t really tell us that Southeast Asia is too weak. Looking at aftermarket performance, in fact most countries have very high one-day pops,” he said. I mentioned my debut.

Fong cited two Thai IPOs as examples.

The PTT Oil and Retail Business was launched in February and made a profit of about 62.5% on the first day of trading. Thai insurance broker Ngern Tid Lor has also risen about 25% from its debut day IPO price.

He added that the two companies were listed in Southeast Asia this year and are one of three companies, each worth more than $ 1 billion.

“These mega IPOs only help encourage other … companies to go public,” Fong said in an era when the market was “still hot.”

Southeast Asian IPO market is led by “still hot” Thailand

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