The long-awaited return of the IPO market has finally arrived, but not where expected.
Encouraged by signs of increased public offering activity, the hopes of US bankers and investors who were preparing for a blockbuster in the second half of the year were dashed. Instead, India, Japan and China took center stage in the third quarter, with some of the biggest listings in recent years.
Hyundai Motor India, Asia’s biggest IPO of 2024 and India’s largest ever, raised $3.3 billion. It was surpassed only by warehouse operator Lineage’s US debut of $4.4 billion in July.
Thanks to Hyundai’s earnings, India’s IPOs have raised more than $12 billion this year, surpassing the previous two years’ total, according to Bloomberg. With over 100 IPOs, India has achieved its highest level of public offerings in over 20 years.
Meanwhile in Japan, subway operator Tokyo Metro raised $2.3 billion in the country’s biggest IPO since 2018. Technology company X-Ray Rigaku closed its $863 million IPO. Together, the deals more than doubled the value of Japan’s 2024 IPOs. They also reassured investors after stock markets were rocked by recession fears and unexpected rate hikes this summer.
After several years of sluggish growth and weak market performance, there is also cautious optimism in China. Bottled water maker China Resources Beverage Holdings and self-driving company Horizon Robotics, which counts Alibaba and Baidu as its biggest investors, debuted in Hong Kong and collectively raised more than $1.3 billion.
Likewise, listing activity increased in Indonesia, Malaysia, South Korea and much of the wider Asia-Pacific region, contributing overall to an 11% quarter-on-quarter rise in IPOs, according to EY. third quarter numbers.
Experts say successful offerings are likely to create positive reinforcement and encourage more companies to go public. Again, experts also warn that the road ahead remains fraught with challenges, including central bank policies, geopolitical uncertainty and upcoming elections in the US and other countries.