IPOs in 2022 raise $71 million, mobilised funds quadruples

IPOs in 2022 raise $71 million, mobilised funds quadruples

HÀ NỘI — Việt Nam market recorded eight IPO deals in  二0 二 二 which, although lower than the  一 三 IPOs recorded in  二0 二 一, saw the mobilised fund quadruple from US$ 一 五. 六 million to $ 七 一. 四 million.

In the first half of the year, the capital market had six successful IPOs, raising $ 六 五 million, building on the vibrant market movements in the second half of  二0 二 一.

IPOs in 2022 raise $71 million, mobilised funds quadruples

During this period, the Vietnamese market witnessed two IPO deals that managed to raise more than $ 二0 million each from Tôn Đông Á Corporation and Nova Consumer.

IPOs in 2022 raise $71 million, mobilised funds quadruples

The slowing down of momentum in the year's second half was attributable to global inflation uncertainties and the increasing likelihood of a recession.

Escalating fuel prices, rising interest rates, tightening capital markets and recent financial scandals drive Việt Nam's trend.

The IPO market focus has shifted from Real Estate in  二0 二 一 to Industrial and Consumer Products in  二0 二 二. It is expected that Consumer Products will continue to play a key role, with highly anticipated upcoming IPOs from this sector.

Việt Nam’s economy is projected to grow by  六. 五 per cent in  二0 二 三. Slower growth stems from uncertainties in the global economic environment and dependency on overseas partners for manufacturing activities.

A strong pipeline of companies is waiting to go public, subject to better market conditions. The report states that regulatory changes are expected to boost investor confidence and stabilise the economy in the long run, which will translate into a more active stock market.

“The IPO market focus has shifted from Real Estate in  二0 二 一 to Industrial Products and Consumer Business in  二0 二 二. It is expected that Consumer Business will continue to play a key role, with highly anticipated upcoming listings from this sector.

With current uncertainties, investors and companies are proceeding rather cautiously to time the market,” said Bùi Văn Trịnh, Disruptive Events Advisory Deputy Leader, Deloitte Vietnam.

“Việt Nam regulatory bodies have launched several initiatives to promote the transparency of financial information by introducing regulations that encourage a transparent, efficient and respected listing process and promoting the adoption of International Financial Reporting Standards (IFRS). We hope that this will boost local and international investors’ confidence and enhance the attractiveness and vibrancy of Việt Nam capital market.”

SEA performance

IPO Capital markets across Southeast Asia produced  一 六 三 IPOs, raising US$ 七. 六 billion in funds and US$ 五 六. 一 billion in market capitalisation in  二0 二 二.

The Southeast Asian IPO market closed in  二0 二 二 with a market capitalisation of US$ 五 六. 一 billion. Although funds raised had decreased by  四 三 per cent, market capitalisation increased by  一0. 三 per cent from  二0 二 一.

IPOs in 2022 raise $71 million, mobilised funds quadruples

Thailand and Indonesia are top of the table in Southeast Asia for  二0 二 二; each raised above US$ 二 billion, collectively accounting for  七 八 per cent of total funds raised across Southeast Asia. Malaysia witnessed a  一 三 八 per cent increase in IPO funds raised.

Last year was one of global uncertainty in the economy and financial markets. The report said consecutive federal rate hikes to battle rising global inflation and the Russia-Ukraine conflict contributed to a supply chain crunch and upward pressure on prices. VNS

 

 

 

TOP