Bangkok: Global IPO market fluctuates after COVID, number and value of shares offered surge amid economic recovery, indicating global economic factors affecting the IPO market.
According to Thai News Agency, the Federation of Thai Capital Market Organizations (FETCO), in collaboration with the Capital Market Research Institute (CMRI), published an article titled "Capital Market Snapshot 'Keep an eye on global IPO trends, market comparisons and analysis (2020-2024)'." The report highlights the high volatility experienced by the global IPO market between 2020 and 2024, marked by a significant increase in 2021 following the recovery from COVID-19, followed by a noticeable decline in subsequent years. The fluctuation is attributed to the impact of global economic factors, although more than 80% of the total offering value was consistently achieved each year.
The report further illustrates that industry trends evolved in response to shifting economic conditions. While the financial sector led globally in terms of fundraising value, especially in the US and Canada, regions such as Asia Pacific and Europe experienced more volatility, with industry trends shifting alongside changes in economic conditions and investment trends.
Post-COVID recovery saw the United States and Canada reporting the highest total value of IPOs in 2021, with Asia Pacific and Europe closely following. In 2022, the Asia Pacific region continued to witness IPO activity, indicating a readiness for investment opportunities among the public.
In ASEAN countries, IPO offerings mirrored global trends, with a peak in total IPO value in 2021 at US$1.67 billion, more than doubling in subsequent years. The financial sector dominated in 2021, followed by real estate, essential goods, and industry. The luxury sector continued to raise funds into 2022, and the materials sector expanded in 2023. Over the past five years, the financial, essential goods, and luxury goods sectors accounted for over 50% of all fundraising in the ASEAN region.
Looking forward to 2024, the focus in the US and Europe is expected to shift to healthcare businesses, while Asia Pacific is projected to prioritize fundraising in the industrial sector. These patterns reflect the unique characteristics and investment interests of each market, underscoring the clear impact of the global economy on IPO trends. The rapid increase in the number and value of share offerings during the post-COVID economic recovery highlights the IPO market's sensitivity to macroeconomic factors.