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Regional IPO Review, Indonesia Outperforms

Regional IPO Review, Indonesia Outperforms

2023 will be remembered as a tough year for Asia-Pacific’s IPO markets, as the two powerhouses of Mainland China and Hong Kong underperformed in volume and value. Last year, 732 companies went public in the region raising US$69.4b, year-on-year decreases of 18% and 44% respectively.

Despite the challenges, Hong Kong still hosted five of the biggest IPOs in the region, yet the heavy hitter for 2023 was Indonesia, with the Jakarta Stock Exchange expanding the number of IPOs for four consecutive years, achieving a new record of 79 deals. Mainland China remained a vital source of IPO funding, contributing over 40% of global proceeds in 2023.

The sectors that defined 2023 regional IPO deals were mining, new energy and biotechnology. The largest IPO was PT Amman Mineral Internasional Tbk, an Indonesian gold and copper miner which raised US$700 million while nickel miner PT Trimegah Bangun Persada Tbk came in third with US$660 million raised. Four renewable energy and electric vehicle (“EV”) battery companies made it into the top 10 regional IPO rankings, demonstrating not only strong investor interest but also firm commitment from Indonesian authorities to establish their country’s position within the regional EV supply chain.

As the world’s largest biotechnology fund raising platform outside of US exchanges, Hong Kong continued to attract new listings from Chinese biotechnology and healthcare companies, with WuXi XDC Cayman raising US$520 million, ranking sixth largest last year; more companies in this sector are expected to go public in 2024.


                     Issuer Fund raised USD Market
1 PT Amman Mineral Internasional Tbk $700 million Indonesia
2 ZJLD Group Inc $680 million Hong Kong
3 PT Trimegah Bangun Persada Tbk $660 million Indonesia
4 PT Merdeka Battery Materials Tbk $600 million Indonesia
5 PT Pertamina Geothermal Energy Tbk $590 million Indonesia
6 WuXi XDC Cayman Inc. $520 million Hong Kong
7 J&T Global Express Ltd $500 million Hong Kong
8 REPT BATTERO Energy Co Ltd $270 million Hong Kong
9 Horizon Construction Development Ltd $210 million Hong Kong
10 PT Barito Renewables Energy Tbk $210 million Indonesia


The top 10 largest IPOs of South East Asia and Hong Kong in 2023



Southeast Asia and Hong Kong IPO 2023 Overview

Indonesia was the top performing nation in the Southeast Asia (“SEA”) IPO markets in terms of number of IPO deals, accounting for 51% of deals which raised US$3.55 billion.

Hong Kong topped the total funds raised with US$5.94 billion from 73 IPO deals. Two other contributors for 2023 were Thailand with 37 IPOs and US$1.06 billion funds raised, and Malaysia with 32 IPO deals and US$0.79bn funds raised. Singapore with just seven deals that raised US$0.03 billion was quite lackluster.

Indonesia’s impressive IPO performance for 2023 was largely due to government policies, while a wait-and-see approach gripped issuers in both Hong Kong and Singapore. Originally, there were over 100 IPO applications in the pipeline for the Hong Kong bourse, but as the market worsened, issuers took the decision to wait for better market conditions, the same thinking was prevalent in Singapore.

The Hong Kong and Indonesia IPO markets moved in opposite directions since 2021, as the Special Administrative Region saw drops in IPO deals and funds raised, decreasing by 19% and 56%, respectively. In spite of this significant drop, Hong Kong’s fund raising still led the region with US$62.17 billion raised across 2021 to 2023.

Indonesia on the other hand has become a regional driver in the IPO market with a 46% increase since 2021, however funds raised was less consistent with a fall in 2022; nonetheless Indonesia still outperformed other markets except for Hong Kong in funds raised since 2021 with US$10.15 billion. The listings of large companies in the renewable energy and metals/minerals sectors have helped propel Indonesia in the regional IPO league table.

For the region, there was overall growth in the number of IPO deals for the last three consecutive years, an increase of 20% however the funds raised dropped by 48% as investors became more cautious.


Outlook for 2024

Interest rates, inflation and geopolitical risks persist and weigh in on the minds of both issuers and investors, thus there is reason to remain circumspect despite the enthusiasm for IPOs.

The possibility of interest rate cuts and moderating inflation may improve IPO market sentiment in 2024, boosting liquidity and return expectation yet geopolitical tensions remain high so recovery to more bullish days is not expected this year. In such an environment, it is prudent for issuers further enhance their fundamentals while managing their pricing expectations as well as recalibrating their IO strategies as some issuers have opted for smaller deals with improved after-market performance.

The existing backlog of issuers seeking public listing, particularly in Hong Kong and Singapore as well as in Thailand, should drive a busier year for IPOs in the region this year.

Photo source: The Jakarta Post