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Thailand Set To Grab Top Spot In Southeast Asian IPO Market In 2020

Thailand has dominated Southeast Asia’s first public service market so far this year, accounting for more than 60% of total regional revenue, according to data and research and consulting firm Deloitte.

IPO’s In Thailand

Thailand has recorded 23 IPO launches from the beginning of the year until November 15 – down from 34 for the whole of 2019, Deloitte data has shown. But the revenue collected so far in 2020 is almost $ 3.94 billion, more than about $ 3 billion last year, according to Deloitte.

The consultant studied IPO methods in six major Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Scenario In Southeast Asia

Across Southeast Asia, there were 100 new lists that raised $ 6.44 billion since November 15. Both the number of donations and the total amount of money collected were lower than last year when 161 IPOs received $ 7.34 billion, Deloitte said.

Chart of the number of IPOs and funds raised across six Southeast Asian markets in 2020
Courtesy: CNBC

Thai rule came even though its economy, which relied heavily on tourism, was one of the worst hit by the coronavirus epidemic. The International Monetary Fund forecast predicts that Thailand’s economy could shrink by 7.1% this year – the second worst deal in South Asia after the Philippines.

But the listing of several companies that have grown up in Thailand this year has attracted “strong” interest from investors and financial managers, said Wilasinee Krishnamra, a disruptive event advisor at Deloitte Thailand, at a webinar last week.

Disruptive event counseling by Deloitte’s team overseeing activities such as IPOs, mergers and acquisitions, segregation, and new integrated businesses.

Among Thailand’s IPOs this year was the country’s best-selling retail company, Central Retail Corporation or CRC, Krishnamra said. The donation was made prior to the epidemic and raised $ 1.77 billion – the largest ever in Thailand, he added.

Chart of IMF's 2021 GDP forecasts for major Southeast Asian economies
Courtesy: CNBC

Investors are attracted to the CRC’s public listing due to the company’s “strong reputation” and rapid business expansion “in overseas markets in Southeast Asia and Europe, he explained.

Thailand Vs Singapore

Thailand looks set to beat Singapore for the second consecutive year to take the top spot in the IPO market in Southeast Asia, according to Deloitte data.

Singapore, a major financial institution, has so far seen just eight new lists of $ 852 million this year. Compared to the 11 IPOs that raised $ 2.26 billion over the entire 2019 year, data shows.

But the city-2020 attracted its first non-REIT IPO in the years when Nanofilm Technologies International was listed on the Singapore Exchange. The company provides protective equipment for Smartphones and televisions.

Chart of the top 10 IPOs in Southeast Asia by country and funds raised in 2020
Coutesy: CNBC

REIT, or real estate investments, are publicly traded companies that own, operate or fund real estate. Singapore is a global REIT base, which has managed IPOs in the city — a few years ago.

Investors can expect more Singapore-based companies to list stock markets – a trend that was unseen last year but began to emerge in 2020, said Tay Hwee Ling, a disruptive event advisor at Deloitte Southeast Asia and Singapore.

“Under volatile market conditions, high-quality and well-established companies will consider getting this opportunity (now) raise more money in the financial market to grow and grow,” Tay told a webinar last week.

But Thailand could also see momentum in IPO activity next year, Krishnamra said. One factor that could drive many IPO operations is the reduction of laws to attract more listings by outside companies, he explained.

Thai Stock Exchange’s Innovative Plan

The Thai Stock Exchange also said it wanted to introduce a new stock market for emerging businesses, as well as small and medium-sized businesses, he added.

About 25 companies are currently in the queue for publicity in Thailand, the largest of which is PTT Oil and Retail Business, Krishnamra said.

The company, which is a spinoff from the national oil and gas organization PTT, runs PTT petrol stations and non-oil enterprises that include franchise rights for several food and beverage chains, as well as simple news.

Synopsis

Thailand has raised about $ 3.94 billion in the first 23 public donations from the beginning of the year to November 15 – accounting for more than 60% of the total revenue generated across Southeast Asia, data presented by Deloitte.

Thailand looks set to beat Singapore for the second consecutive year to take the top spot in the IPO market in Southeast Asia, according to data.

Across Southeast Asia, nearly $ 6.44 billion has been raised from 100 IPOs, Deloitte said.

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Shaheer Ansari

Shaheer is passionate about living a life seeking un-ending knowledge, philomath, as you may think of him. He's a student of Finance and a keen observer of Business and Indian-Political scenario who takes pleasure to pen down his views and opinions on the same. As his guiding mantra to life, ‘Come what may , life goes on’ helps.

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