Southeast Asia’s IPO market is ‘nonetheless scorching,’ Thailand is main the best way

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

Taylor Weidman | Bloomberg through Getty Photos

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

Information exhibits it has been a standout in Southeast Asia’s public itemizing area.

“Thailand is doing very well. It continues the great pattern 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 keeping with Dealogic information.

With no cause for the present pattern to cease, Thailand’s IPO area now seems “on observe to have a report yr,” the analyst added.

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

Up to now 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 keeping with Fong.

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

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

‘Very excessive one-day pop’ for some IPOs

Covid-19 has ravaged by a lot of Southeast Asia as their respective governments wrestle to acquire ample vaccines to inoculate their residents.

However the affect of the resurgence of the pandemic is “not likely seen” within the IPO area, 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 really many of the international locations 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 firms had been amongst three that listed in Southeast Asia this yr which have been valued at greater than $1 billion every, he added.

At a time when the market is “nonetheless scorching,” Fong stated, “these mega IPOs simply assist encourage different … firms to checklist.”

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