Equity Capital Markets Watch - 2023 year in review, Singapore, Southeast Asia and Hong Kong

January 2024

According to PwC’s latest Equity Capital Markets Watch, in 2023, Hong Kong and Indonesia were the leaders in IPO activity in the region, respectively in terms of the amount of funds raised and the number of IPOs. This reflects the resilience of the Hong Kong capital market despite global market challenges, and the huge potential of Indonesia as Southeast Asia’s largest economy in attracting investors. Among the top ten IPOs in terms of funds raised in 2023, five were listed on the Hong Kong Stock Exchange and five on the Indonesia Stock Exchange. These IPOs included companies in industries such as resources, consumer goods, renewable energy, healthcare, logistics, and construction. Despite challenges in the global capital market climate, well prepared IPO candidates with strong equity story and growth trajectory continued to attract investors.

The outlook for the Southeast Asia and Hong Kong IPO market in 2024 will remain challenging in view of geopolitical tensions. However, stabilising macroeconomics and an accommodating interest rate environment could propel a rebound and drive growth for the region’s IPO market. This would be supported by increased certainty following the presidential election in Indonesia and the implementation of market reform initiatives in Hong Kong aimed at attracting new economy and innovative companies to list.