Thailand ranks in top three for Southeast Asia IPOs

Thailand has emerged as one of the top three initial public offering (IPO) markets in Southeast Asia, securing 26% of the total fundraising in the region. This achievement reflects a robust pipeline of IPOs, particularly in the consumer, healthcare, and real estate sectors, according to global consultancy Deloitte.

As of yesterday, November 19, Thailand conducted 29 IPOs in the year, raising new funds amounting to US$756 million. Across Southeast Asia, a total of approximately US$3 billion was raised through 122 IPOs. Malaysia led the region in terms of the number of IPOs, total funds raised, and IPO market capitalisation.

Despite the healthy number of IPOs, the total capital raised in the region was the lowest in nine years, dropping from the US$5.8 billion raised through 163 IPOs in 2023, said Wilasinee Krishnamra, transactions accounting support partner at Deloitte Thailand.

“In 2024, Thailand’s stock market landscape and IPO listings reflect a combination of economic recovery and moderate growth. As companies seek to capitalise on post-pandemic growth, many have demonstrated resilience and developed business strategies and operations that use generative artificial intelligence and robotics.”

Deloitte highlighted initiatives by the regulator to enhance market transparency and support growing businesses, including smaller enterprises, to stimulate fundraising activities, added Wilasinee.

“While challenges with economic decoupling and climate change persist, the capital market continues to recover, fuelled by strong governance and political stability.”

IPO listings

Plans for upcoming IPOs include ventures in the consumer, life sciences, and healthcare sectors, as well as real estate investment trusts, as companies aim to seize opportunities within the Thai market.

Tay Hwee Ling, accounting and reporting assurance leader at Deloitte Southeast Asia, noted that the Southeast Asian IPO market faced notable regional challenges this year. These challenges included currency fluctuations, regulatory differences across markets, and geopolitical tensions impacting trade and investment, said Tay

“High interest rates across Southeast Asian economies further constrained corporate borrowing, dampening IPO activity as companies opted to delay public listings.”

Moreover, market volatility among major trading partners such as China affected investor confidence, while varied regulatory requirements across Southeast Asian nations complicated cross-border listings, reported Bangkok Post.

In terms of industry sectors, the consumer and energy and resources sectors led the region, representing 52% of all IPOs and 64% of the total IPO funds raised.

Deloitte anticipates a rebound in the region’s IPO market next year, supported by anticipated interest rate cuts that could create a more favourable environment for IPOs in the future, said Tay.

“Southeast Asia’s strong consumer base, growing middle class, and strategic importance in sectors such as real estate, healthcare, and renewable energy remain attractive to investors.”

As foreign direct investment continues to flood into the region, 2025 is expected to witness renewed IPO activity across Southeast Asia.