More Billion-Dollar Equity Deals Expected in Southeast Asia – Citi
(08 October 2020 – Southeast Asia) Citi co-head for Asia equity capital markets Udhay Furtado anticipates more billion-dollar deals in Southeast Asia's equity capital markets over the next 12 months as markets rebound.
The big transactions are likely to come from tech, household consumer and healthcare players – the clear winners from the coronavirus pandemic.
There has been US$6.3 billion of equity issuance on the Southeast Asian bourses so far, potentially the lowest annual issuance volume this decade. Thai conglomerate Central Group was the only IPO (initial public offering) over a billion dollars to date in the region. There were only four IPOs above US$100 million, with the Philippines' Ayala Land Real Estate Investment Trust (Reit) leading at US$250 million.
But Furtado noted that "we're starting to see the new issues markets opening up, just that it's been a lot slower. We don't have that many weeks left in 2020, but I do think we're going to see a few more interesting transactions.”
"Southeast Asia is one of the highest growing regions. We have a young population and strong underlying consumer growth, which is what the global market is attracted to."
"The New Economy, over the next 12 months, is going to be a large component of issuance," said Mr Furtado, who is expecting more unicorn IPOs.
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