China pulls down APAC IPO activity in first eight months of 2023, reveals GlobalData
September 27, 2023 (Investorideas.com Newswire) The Asia-Pacific (APAC) initial public offerings (IPOs) market has continued to grapple with disruptions, including the lingering impact of COVID-19, the Russia-Ukraine conflict, rising inflation, and geopolitical tensions. In the first eight months of 2023, APAC saw a significant decline in IPO activity, with 491 listings totaling $44.4 billion, down by 55.9% compared to the same period in 2022. Slower economic recovery in China was a key factor, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that there were 1,113 IPO listings with a deal value of $80.8 billion in APAC during the first eight months of 2022.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: "The substantial decrease in IPO activity can primarily be linked to the slower-than-anticipated economic recovery in China, which resulted in many companies adopting a cautious approach.
"Bright spots were the Indian IPO market, buoyed by a strong upswing in the secondary market, enhancing the overall market confidence. Additionally, the Indonesian IPO market demonstrated noteworthy growth, with a 30% increase, featuring 52 IPOs that collectively raised $3.8 billion. This growth was fueled by robust economic expansion, backed by abundant mineral resources and strategic state-owned enterprise privatization."
India secured the top position with 152 transactions worth $3.8 billion, followed by Indonesia with 52 deals totaling $3.8 billion. However, China experienced an 85% decline in IPO deals with 88 transactions totaling $32.4 billion.
The IPO landscape was dominated by the technology and communications industry, with 102 transactions amounting to a total of $4.5 billion. Close behind, industrial goods and machinery recorded 49 deals with a value of $1.9 billion. Financial services followed with 42 deals totaling $2.6 billion, while pharmaceuticals and healthcare registered 42 transactions valued at $1.9 billion. Business and consumer services rounded out the top sectors with 34 deals worth $1.3 billion.
Few noted IPOs include Nexchip Semiconductor Corp and Shaoxing SMIC Manufacturing Co Ltd with deal value of $1.6 billion and $1.4 billion, respectively.
Grandhi concludes: "GlobalData anticipates an upswing in APAC IPO activity on the horizon, characterized by increasing momentum and larger deals that will transcend liquidity constraints and modest valuations. This resurgence is being driven by the enduring dynamism of ASEAN nations and Japan, coupled with a revitalized market in China, positioning the region for a notable increase in deal flow."
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Notes to Editors
- Quotes are provided by Murthy Grandhi, Company Profiles Analyst at GlobalData
- The information is based on GlobalData's Company Reports Database
- This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts
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