Southeast Asia’s IPO market is ‘still hot,’ Thailand is leading the way

The signage for Thailand Stock Exchange (SET) will be displayed outside the Bangkok Stock Exchange in Bangkok, Thailand on Monday, October 26, 2020.

Taylor Weidman | Bloomberg via Getty Images

Thailand could see a record number of IPOs this year, says Ken Fong of Dealogic.

The data shows that it stands out in the public listing space of Southeast Asia.

“Thailand is going really well. It continues last year’s good trend, ”said Fong, Head of Equity Capital Market Research Asia-Pacific at Dealogic.

Deals to date this year totaled $ 2.92 billion, according to Dealogic data.

For no reason to stop the current trend, Thailand’s IPO space now appears “on the way to a record year,” added the analyst.

The Southeast Asian country typically sees around 30 public entries each year, and data showed that most are received in the latter half of the year, he told CNBC in a call. “About 70-80% of the activities come from Q4 and Q3 each year.”

There have been 14 listings so far this year in Thailand – about half the annual level, according to Dealogic data. The amount raised through this year’s IPOs has already exceeded the annual average of $ 2.8 billion, according to Fong.

Elsewhere in the region, the Philippines has also seen a relatively strong performance in its IPO market following the debut of food and beverage company Monde Nissin – dubbed by Fong the “largest” public listing in the country.

In Malaysia and Singapore, however, the listing scene has been “pretty quiet,” he added.

“Very high one-day pop” on some IPOs

Covid-19 has devastated much of Southeast Asia as their respective governments struggle to get adequate vaccines to vaccinate their citizens.

But the effects of the pandemic resurgence are “not really visible,” Fong said in the IPO space.

“I don’t really see from our data that Southeast Asia is too weak. We look at aftermarket performance and in fact most of the countries have very high one-day pop, ”he said, referring to a strong debut on day one.

Fong cited two IPOs in Thailand as examples.

PTT Oil and Retail Business went public in February and gained around 62.5% on the first day of trading. Thai insurance broker Ngern Tid Lor also jumped about 25% from the IPO price on its debut day.

Both companies were among the three companies listed in Southeast Asia this year, each valued at more than $ 1 billion, he added.

At a time when the market is “still hot,” said Fong, “these mega-IPOs are only helping to encourage other … companies to go public.”

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