Synopsis: In the first eight months of 2024, India recorded 227 IPO listings valued at $12.2 billion, nearly tripling the previous year's figures. The Asia-Pacific (APAC) region also experienced significant growth, with 575 IPOs generating $23.7 billion, representing a 15.6% increase over the same period in 2023.
India’s primary market showcased exceptional resilience in the first eight months of 2024, leading the IPO activity in the Asia-Pacific (APAC) region.
According to GlobalData, a leading data and analytics company, India reported a total of 227 IPO listings, raising $12.2 billion between January and August 2024.
This marks a dramatic increase from the $4.3 billion generated during the same period in 2023, nearly tripling India’s IPO proceeds.
APAC IPO Growth Amid Challenges:
The APAC region, which has been grappling with inflation and geopolitical uncertainties, saw its primary market grow by 15.6% in terms of IPO proceeds compared to the same timeframe in 2023.
A total of 575 listings across APAC raised $23.7 billion in the first eight months of 2024.
GlobalData’s analysis points to India’s strong performance as a significant driver of this growth, while other key markets, such as South Korea and Japan, also posted impressive gains.
Murthy Grandhi, Company Profiles Analyst at GlobalData, noted the substantial rise in India’s IPO market, highlighting that the country’s capital market activity has been robust despite global economic challenges.
"The Indian IPO market saw an exceptional growth in the first eight months of 2024, with proceeds nearly tripling to $12.2 billion compared to $4.3 billion during the same period in 2023. This significant increase highlights India’s strong capital market activity," Grandhi stated.
South Korea, Japan Drive APAC’s Momentum:
South Korea recorded a remarkable 185.7% surge in IPO proceeds during the first eight months of the year, with 60 IPOs raising $1.2 billion.
Similarly, Japan experienced a 48.5% increase, with 49 IPOs generating $1.6 billion.
The growth in these markets can be attributed to the liberalization of trading rules, which has created a more favorable environment for public listings.
However, China’s IPO market struggled, registering a slight 8% decline in deals, with only 69 IPOs raising just over $5 billion.
The Chinese market faced both structural and cyclical pressures that slowed its IPO momentum.
Industry Insights and Major IPOs:
In terms of sector performance, the technology and communications industry dominated APAC’s IPO landscape, accounting for 105 transactions valued at $2.4 billion.
The construction industry followed closely with 68 deals, raising a total of $2.2 billion.
Noteworthy IPOs during this period include HD Hyundai Marine Solution Co Ltd, which raised $540 million, and Bharti Hexacom Ltd, with a deal value of $795 million.
These major listings underscore the importance of large transactions in driving IPO market growth.
Looking Ahead: A Positive Outlook for APAC IPOs:
According to GlobalData, the APAC region is forecasted to see a resurgence in IPO activity, driven by larger transactions and accelerating market momentum.
India, Japan, and parts of the ASEAN region are expected to continue attracting strong capital inflows, while other markets, particularly certain sectors within China, are likely to face liquidity constraints and valuation pressures.
In conclusion, the IPO market in the Asia-Pacific region, particularly India, has demonstrated exceptional growth in the first eight months of 2024, despite the challenges of inflation and geopolitical tensions.
India’s capital market activity has been a standout performer, with proceeds tripling compared to the previous year.
While certain APAC markets are thriving, China’s IPO landscape faces hurdles that may affect its long-term outlook.
The forecast for the region remains positive, with larger transactions anticipated to drive future growth.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
