SE Asia braces for bunch of IPOs led by consumer durables, tech sectors

Initial Public Offering (IPO). Image: DEALSTREETASIA

A handful of companies from the technology and consumer durables sectors are aiming to launch IPOs in Southeast Asia later this year, pointing to an upturn after pandemic-hit markets and weak economic growth slashed fundraising.

In Malaysia, home improvement retailer Mr DIY has re-started the process for its up to $500 million initial public offering (IPO), boosted by a business recovery, sources familiar with the deal said.

The company declined to comment and the sources declined to be named due to confidentiality.

Earlier this month, Philippine fibre broadband services provider Converge ICT Solutions filed for an IPO of up to $725 million, cashing in on a surge in home working..

It held up to 50 meetings with investors this month to chart demand for the deal, one source said.

AREIT, Philippines’ first real estate investment trust is also raising $275 million.

Activity is picking up in the region after grinding to a halt in the first quarter.

IPOs which had been planned before the pandemic are just waiting for the right moment to come back,” said Tham Tuck Seng, capital markets partner at PwC in Singapore.

“We’ve seen heightened interest from healthcare issuers to list as the sector has become more important,” he said, also highlighting interest from consumer-tech firms.

Total fundraisings from IPOs in Southeast Asia have fallen to $1.4 billion so far this year from $2.9 billion a year ago, Refinitiv data shows. This excludes $3 billion raised by Thailand’s Central Retail in February.

The Hong Kong market has started to heat up again with $38 billion raised this year in IPOs and secondary listings, according to Dealogic.

Sources cautioned that a pullback in global markets in recent weeks could still delay listings by Southeast Asian companies, but launches were being readied for later this year.

The Philippines’ equity index has dropped 25% so far this year, while Indonesia is down 19% and Thailand has lost 15%.

In Thailand, Siam Cement Group’s packaging subsidiary is testing investor appetite for its $1 billion IPO, likely in the fourth quarter, which was shelved in March as markets were roiled by the epidemic, sources said. The company did not respond to a Reuters query.

Malaysia’s Mr DIY had put its IPO on hold in March just before the country went into lockdown. “The push towards the IPO is because the company’s business recovery has been so fast,” said one source.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.