Southeast Asia's IPO market is an investor favorite amid global headwinds, Deloitte says

cnbc.com:

Southeast Asia's initial public offering market is showing promising signs despite a global IPO slowdown in the first half of 2023, according to a new Deloitte report.

In the last six months, Southeast Asia's market saw 85 IPOs raising $3.3 billion in proceeds, versus the 73 IPOs in the same period last year which raised $3.1 billion. That's a 16% increase in the number of IPOs and a 5% increase in proceeds for the first half of 2023.

«Southeast Asia's positive growth outlook is making the region an investor favourite as there continues to be an influx of foreign direct investment due to the region reopening its doors, the restoration of the tourism industry, and the booming domestic demand,» the report said.

«Together, these factors have contributed to the positive economic growth in the region despite the global economic uncertainties.»

The uplift was largely attributed to three IPOs in Indonesia that raised more than $500 million each, as compared with only one blockbuster IPO — GoTo, the merged entity of Gojek and Tokopedia — at $1 billion in the same period last year.

Meanwhile, the tech-heavy Nasdaq stateside has yet to see a notable venture-backed tech IPO since software vendor HashiCorp's December 2021 debut.

There is a global IPO slowdown that persisted through the first half of 2023, with 5% fewer IPOs as compared to the same time last year, an EY report revealed. Proceeds plunged 36% year-on-year.

Indonesia raised 70% of the total IPO proceeds in Southeast Asia for the first half of 2023.

The IPO market of the world's fourth most populated nation was highlighted by three listings: nickel company PT Trimegah Bangun Persada Tbk, minerals and EV battery materials firm PT Merdeka Battery Materials Tbk and