More than US$3 billion was raised from initial public offerings (IPOs) on Thailand's bourses in 2022, the highest IPO value in Southeast Asia as regional fundraising dropped by nearly half from the previous year, according to a new study.
Last year the Stock Exchange of Thailand (SET) raised a total of $3.6 billion, on par with the pre-pandemic years of 2017 and 2019, according to the "Southeast Asia IPO Capital Market" report by Deloitte.
Following the country's reopening and relaxation of Covid restrictions, 90% of the total amount came from the second half of 2022, the report noted.
The value of IPOs from 42 listings fell by 18%, although market capitalisation remained stable compared to 2011.
"We continue to see several IPOs from a diverse pool of industries on the SET, including fast-moving consumer products, financial services and construction businesses," said Wilasinee Krishnamra, disruptive events advisory leader at Deloitte Thailand.
The report predicted the Thai bourse would perform better in 2023 than last year, as more companies are preparing to list and the new three-year financial statements requirement will be effective from Dec 31 this year.
"There are 29 companies in the pipeline to list this year," said Ms Wilasinee.
According to Deloitte, the country's economy is forecast to grow by 3.7% this year compared with 2.8% in 2022, boosted by increasing tourism activities and private consumption. Nonetheless, factors such as the baht's depreciation and the rising probability of recession remain risks for the market.
Last year, Southeast Asian bourses reported a total 163 IPOs which raised $7.6 billion in funds, closing with a market capitalisation of $56.1 billion, amid economic and geopolitical uncertainties as well as interest rate hikes.
Although funds raised had dropped by 43%, market capitalisation increased 10.3% from the previous year.
Thailand and Indonesia ranked top in the region for 2022, with each raising funds surpassing $2 billion and collectively accounting for 78% of total funds.
"There is still room for high growth in Southeast Asia, as the region emerges from the Covid crisis. We expect IPO activity to go through cyclical highs and lows, as the market recalibrates from the pandemic mindset to 'regular programming'," said Tay Hwee Ling, disruptive events advisory leader at Deloitte Southeast Asia and Singapore.
