FUNDRAISING activities will continue in Southeast Asia as economies in the region recover from the Covid-19 pandemic.
There has been an increase in new initial public offerings (IPOs) in the first half (S1) of 2021 and the trend will continue into the second half. Deloitte is betting that the IPO market in Southeast Asia will continue to attract new and exciting large cap companies with high valuations.
He also expects a resurgence of interest in special purpose acquisition companies or PSPC listings. The rationale being that PSPC offers a faster alternative to raise capital compared to traditional IPOs.
He says a number of tech startups are looking for PSPC mergers in U.S. capital markets.
Regarding IPOs, Malaysia recorded 13 new IPOs in the first half of the year, raising RM 395 million with an IPO market cap of RM 1.5 billion on Bursa Malaysia.
This is a 102% increase in funds raised from the first half of 2020, when only seven IPOs were listed, raising proceeds of RM 196 million with a market cap of RM 0.85.
During the same period, 59 IPOs in Southeast Asia raised US $ 5.97 billion (RM 25 billion).
The best performing country, and still the darling of stock investors, is Thailand, which raised US $ 3.3 billion representing about 55% of the total amount raised in IPOs in Southeast Asia in the first half of the year. 2021.