Hyphen Partners’ Post

In a year when global IPO markets have wilted under the economic heat, Bursa Malaysia has stood out as a surprising oasis of activity. Malaysia led the ASEAN region with 21 listings in the first half of this year, raising around $450 million, according to Deloitte. And in early September, 99 Speedmart, the country's top mini-market chain retailer, raised 2.36 billion ringgit ($542.8 million) in Malaysia's biggest domestic listing in seven years. Kai Chee Wan at Rahmat Lim & Partners says the general economic environment in Malaysia for capital markets and investment is positive and are likely to stay so in the near future due to a backlog of prospective proposals during the COVID pandemic. Ong Eu Jin of Ong Eu Jin Partnership also believes the IPO pipeline will keep pumping. “Some business owners may be motivated by the higher valuation and pricing the market is now willing to accept or the performance of the stock price of recent IPOs,” says Ong. Sarah Wong has the story: https://lnkd.in/gcu7cwet

😯 📉💸 Nikkei Asia [excerpt]: During the first six months of the year, the total value of mainland #China's #IPOs has plummeted 84% on the year to 32.5 billion yuan ($4.48 billion), while only 44 companies went public, down 75%. "The listing pace in the second quarter is much slower," Dick Kay, offering service leader of #Deloitte's capital market services group, told reporters on Friday. "Basically, you saw no deals in March and April." Despite the dismal showing so far, he kept his full-year forecast for China IPOs at 139 billion yuan to 166 billion yuan, as it was already halved three months earlier. Kay is "counting on" the implementation of more policy stimulus, but he also said he is "leaning towards" the lower end of the projection. Deloitte has also cut its outlook for #HongKong IPOs for the year to a range of 60 billion to 80 billion Hong Kong dollars ($7.7 billion to $10.3 billion), down from HK$100 billion in the previous quarter. "The most important thing to attract new companies is market valuation," said Edward Au, southern region managing partner at Deloitte China. The price-to-earnings ratio of Hong Kong main board stocks was 12 during the second quarter, down from 19 for the same period of 2021. Hong Kong, which used to be the top IPO destination for Chinese companies, has been in a slump since 2021. The city ranks ninth among global IPO markets in terms of total funds raised during the first half of this year, with a year-on-year decline of 27% to HK$13.1 billion, according to Deloitte's data. This poses an unprecedented challenge for the #venturecapital and #privateequity sector. "This is probably the worst exit market that we've seen for the last 20-plus years," said Ian Goh, managing partner for China at venture capital firm 01VC, at an industry forum in May. While Hong Kong's market has been drying up for a while, the shift on the mainland came after China's #securities watchdog introduced stricter regulations in mid-March to shore up market confidence. This has contributed to a significant decline in IPO applications, with only two companies applying in the past six months, compared with 334 last year. "The strict standards have made companies hesitant to file their applications," said Ringo Choi, Asia-Pacific IPO leader at EY. Goh at 01VC also said it is the "hardest and the worst" time to raise funds in China. In 2023, the total amount of venture #investment in the country plunged by 66% to $14.1 billion. The downtrend has continued this year, with a 30% year-on-year decline as of May, Dealogic data shows. Capital associated with foreign investors dropped 60% on the year to just $3.7 billion in 2023, nearly 90% off the recent peak in 2021. In March 2022, the U.S. Federal Reserve raised interest rates, strengthening the dollar and triggering a fall-off in dollar-denominated investment in China. #news #business

Amid the spate of Indian companies changing their domicile from Singapore/ USA back to India to make operations easier/ IPO sooner etc., I’m reminded of all the conversations I had with investors in the plant-based space who said they would only invest in One Good if we changed our domicile to USA/ Singapore. We let go of 5-6 funding opportunities because we were determined that we had to be domiciled here. Running two companies in two countries is not easy, and investor interest alone should not be the determining factor, although it often is. Good to see this change, both on the company and investor front.

As we enter the latter half of 2024, the IPO market seems poised for a potential revival after years of drought following the frenzy of 2020-2021. Imminent interest rate cuts and favorable market conditions have opened a brief window for companies to go public before the U.S. elections in November.   Asia's IPO landscape reflects broader macroeconomic and geopolitical dynamics. India is leading the way, raising $7.83bn YTD, already close to its 2023 total. In contrast, China and Hong Kong's IPO volumes have plummeted by over 85%. India’s largest IPO year-to-date, Ola Electric Mobility raised $732mn and surged +51% since its August debut, while Chinese IPOs struggled, with some underperforming by over 60%.   Meanwhile, the Hong Kong Exchange (“HKEx”) is adapting to market conditions, relaxing thresholds for tech listings and De-SPAC transactions, aiming to boost its competitive edge. Midea Group's roadshow for a potential $3.46bn H-share listing could breathe new life into Hong Kong's capital markets, providing a much-needed boost if successfully priced.   Stay tuned for further updates from Skyway Pacific as we continue monitoring the evolving capital market trends. If you're interested in our findings, feel free to reach out to us at [email protected] for additional information.   #SkywayPacific #MarlonSanchez #IPOTrends #AsiaCapitalMarkets #InvestmentOpportunities #HongKongIPO #IndiaCapitalMarkets

2024 is poised hit nearly 200 #initialpublicofferings Glad to learn that the global #initialpublicoffering (IPO) market is poised for a resurgence in 2024, as companies across various regions gear up for significant listings. In Asia, Alibaba.com (NYSE:BABA)'s logistics arm, Cainiao Network, is considering a #hongkong 🇭🇰 IPO that could be valued at $1 billion. Concurrently, @Tokyo Metro 🇯🇵 is on track for a $5 billion offering, having secured the green light from Japan's Transport Ministry. Indian 🇮🇳 electric scooter manufacturer Ola is also in the fray, seeking to raise $660 million in preparation for its IPO. In #europe, the potential for interest rate cuts is creating an optimistic environment for IPOs, with companies such as Germany's 🇩🇪 Douglas and Spain's 🇪🇸 TENDAM are contemplating market debuts. Additionally, pharmaceutical giant Sanofi (NASDAQ:SNY) is exploring the possibility of spinning off its consumer-health division, a move that could see the new entity valued at over $20 billion. The #unitedstates 🇺🇸 is not far behind, with Renaissance Capital Markets forecasting between 120 and 170 IPOs this year. Social media platform Reddit, Inc. is targeting a valuation near $15 billion, although its profitability remains under scrutiny. #capitalmarkets #deals #dealmaking #listings #stockmarkets #stockmarketnews

🔥 Hot Take: #Singapore's stock market is in a state of freefall. But it's not a death sentence. It's an opportunity for a dramatic comeback. 🌐 Picture this - a market capitalization of USD 590 billion. Sounds impressive, right? But when you stack it against the Hong Kong Stock Exchange's USD 3.3 trillion and Indonesia's USD 756 billion, it's clear Singapore is falling behind. 🎢 The rollercoaster ride doesn't end there. In 2023, Singapore saw just six IPOs, raising a paltry USD 35 million. Compare this with Indonesia's 79 IPOs, and something doesn't add up. 🔍 So, what's causing this downward spiral? Three culprits. Low liquidity and market size. A shaky regulatory environment. A dearth of retail and institutional investors. But here's the kicker. 🔥 It doesn't have to be this way. 💡 Let's flip the script, starting with dual-class shares. High-growth companies want to maintain control while raising capital. The NYSE has seen success with this model. Why not Singapore? 🚀 Next, it's time for the government to step up. We've seen initiatives like the Anchor Fund @ 65 and the EDBI Growth IPO Fund. But it's time to be bold. It's time to go big. 🛡️ Rebuilding trust in the market is key. An ombudsman office for retail investors. Enhanced corporate governance. Increased transparency. 💼 Lastly, let's tap into institutional investors. Sovereign wealth funds like GIC and Temasek. Local insurance firms. They all have a role to play in boosting liquidity and trading volumes. 🌱 Revitalizing the Singapore stock market isn't just a dream. It's a necessity. It's an opportunity to innovate, to challenge, and to rebuild. 🔮 The future of Singapore's stock market lies in bold strategies and concerted efforts. The road ahead is challenging, but the potential for a vibrant, robust market is there. 🔥 Hot Take: Singapore's stock market isn't at rock bottom. It's on the brink of a comeback. And that's a comeback you'll want to be a part of. 🚀🚀🚀 Chart courtesy of CNA.

To esreveR pilF or not Yes, you read that right! The reverse flip phenomenon came a step closer to reality due to develoments in Singapore (See today's press). It's welcome news for the Indian capital markets as more Indian companies (Startups and scaleups) with overseas domiciles take steps to Internalise / move their holding companies back to India. Our primary capital markets need more diversity in the kind of companies that list on them especially new age businesses. The choice of where to list is determined by a range of factors including the domicile of the lead investors, tax consequences of exits for them, the location of the company's business and vendors, the markets where they can find peer companies etc to name a few. While most traditional Indian companies have listed in India, a few went on to list in the US and elsewhere. However the numbers have been significantly lower than the hundreds of Chinese companies that listed in the US in the early 2000s (driven by very different reasons). Given the global mobility of capital, prevailing geo politics and the vibrancy of the Indian markets (alongwith some of the reasons cited above) there are compelling reasons for the reverse flipping phenomenon to gather momentum. Inbox me if you'd like to have a chat regarding this. #Reverseflipping #Internalisation #IPO #Capitalmarkets (VIEWS ARE PERSONAL)

Have you been following the resurgence in IPO activity this year? The United States is leading the charge, with several regions showing promising trends. Let's explore the key insights driving this momentum. 𝟏. 𝐔𝐧𝐢𝐭𝐞𝐝 𝐒𝐭𝐚𝐭𝐞𝐬 𝐏𝐨𝐢𝐬𝐞𝐝 𝐟𝐨𝐫 𝐈𝐏𝐎 𝐑𝐞𝐛𝐨𝐮𝐧𝐝 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭 𝐄𝐜𝐨𝐧𝐨𝐦𝐲: Despite inflation and interest rate hikes, the US economy grew by 2.5% in 2023, providing a stable backdrop for IPOs. 𝐈𝐦𝐩𝐫𝐨𝐯𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬: IPOs in the first two months of 2024 are up 24% from last year. Reddit's successful IPO in March further boosts confidence. 𝐁𝐚𝐜𝐤𝐥𝐨𝐠 𝐨𝐟 𝐕𝐂-𝐁𝐚𝐜𝐤𝐞𝐝 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬: With many venture-backed companies ready to go public, the pressure to realize exits will drive IPO activity in 2024. 𝟐. 𝐄𝐮𝐫𝐨𝐩𝐞 𝐚𝐧𝐝 𝐀𝐬𝐢𝐚 𝐅𝐚𝐜𝐞 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐏𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐚𝐧𝐝 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐈𝐧𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Instability in Europe and China could dampen IPO activity, pushing companies to consider the US as a safer option. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐏𝐫𝐞𝐬𝐬𝐮𝐫𝐞𝐬: Regulatory hurdles, like those faced by Shein in the US, can impact where companies choose to list. 𝟑. 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐒𝐡𝐨𝐰 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐈𝐧𝐝𝐢𝐚: With a thriving startup ecosystem and favorable regulations, India is poised for continued IPO activity. 𝐋𝐚𝐭𝐢𝐧 𝐀𝐦𝐞𝐫𝐢𝐜𝐚: Increased venture capital investment and a growing number of unicorns suggest potential IPOs on local exchanges or in the US. The US is expected to lead IPO activity among VC-backed startups in 2024, thanks to its resilient economy, improving market conditions, and a backlog of mature startups. While Europe and Asia face challenges, emerging markets like India and Latin America show promise. The IPO landscape remains dynamic, influenced by economic, regulatory, and geopolitical factors. Startups and investors must navigate these conditions carefully to capitalize on opportunities. How do you think these trends will shape the global IPO market in 2024? 🤔 #IPO #VentureCapital #StartupFunding #Investment #GlobalMarkets #EmergingMarkets 

𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐫𝐨𝐦 𝐄𝐘 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐏𝐎 𝐓𝐫𝐞𝐧𝐝𝐬 2023. 1. In 2023, 𝐧𝐞𝐰 𝐡𝐨𝐭𝐬𝐩𝐨𝐭 𝐈𝐏𝐎 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 𝐨𝐮𝐭𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐞𝐝 𝐭𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐨𝐧𝐞𝐬, despite an overall decline of approximately one-third in IPO proceeds compared to the lukewarm pace of 2022. While many governments globally implement measures to stimulate IPOs, high-growth economies stole the spotlight, exemplified by Indonesia, Malaysia, and Turkey, all surpassing their 5-year average IPO activity in volume and proceeds.  • 𝐈𝐧𝐝𝐨𝐧𝐞𝐬𝐢𝐚's thriving IPO expansion, fueled by global demand for its mineral resources, a large population, fast-growing unicorns, and strategic privatisation, was notable.  • 𝐓𝐮𝐫𝐤𝐞𝐲's IPO market surged as companies sought fresh financing opportunities, capitalising on retail investors' interest.  • 𝐈𝐧𝐝𝐢𝐚, 𝐒𝐚𝐮𝐝𝐢 𝐀𝐫𝐚𝐛𝐢𝐚, and 𝐓𝐡𝐚𝐢𝐥𝐚𝐧𝐝 recorded more IPOs compared to their 5-year averages, with India maintaining robust momentum despite smaller deal sizes affecting proceeds.  • 𝐓𝐮𝐫𝐤𝐞𝐲, 𝐔𝐀𝐄, and 𝐈𝐧𝐝𝐢𝐚 boast the peak post-IPO performance in 2023 with 100%, 80%, and 75% of newly public companies showing positive returns. 2. The global race to attract 𝐜𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐥𝐢𝐬𝐭𝐢𝐧𝐠𝐬 has intensified as stock exchanges strive to lure the next wave of high-growth, innovative companies. To entice potential issuers and enhance liquidity, exchanges worldwide are adopting strategies such as relaxed regulations, advanced trading tools, and broader investor pools. According to the January 2023 EY CEO Outlook Pulse survey, 70% of private company CEOs express a willingness to explore new markets with strong geopolitical and economic ties to their home countries. However, despite this openness, concerns about after-market performance may temper their enthusiasm for cross-border deals. 3. 𝐁𝐚𝐜𝐤𝐥𝐨𝐠𝐬 𝐨𝐟 𝐈𝐏𝐎𝐬 are mounting across growth sectors, with the technology and health/life sciences fields leading the pipeline, fueled by substantial venture capital support. With a significant drop in valuations over the past two years, companies in these sectors are holding back, contributing to a surge in global IPO withdrawals and postponements in 2023. This spike, involving approximately 800 deals, represents half of the total IPO volumes and contrasts sharply with the 2014-2021 average of 17% dropped listings. While the current landscape sees businesses biding their time, the inevitability of a rebound is looming, driven by the essential need for funding. Due to the existing backlog, it's a matter of when, not if, activity will resume, pointing towards a promising 2024. https://lnkd.in/dSC6D3yc #AdAstraIPO #IPOreport #IPO #IPOs #IPO2023 #IPOtrends

In today's evolving global market, companies looking to go public through an IPO must adopt flexible and strategic approaches to navigate dynamic conditions. In the first half of 2024, global IPO volumes fell by 12%, with proceeds dropping by 16% year-over-year (YOY). This decline, driven primarily by a slowdown in Asia-Pacific activity, contrasts sharply with the surge in IPO activity in Europe, the Middle East, India, and Africa (EMEIA), which regained the No. 1 global IPO market share for the first time in 16 years. To succeed, companies must remain adaptable. Regions experiencing economic headwinds, such as Asia-Pacific, saw a staggering 43% decline in IPO volume and a 73% drop in proceeds. In contrast, EMEIA and the Americas have shown robust growth, with the Americas raising $17.8 billion in IPO proceeds, a 67% increase YOY. These regions offer more promising opportunities for IPOs, fueled by investor confidence and improving market conditions. Investor sentiment has also shifted, with a growing emphasis on profitability and sustainability. In 2024, 41% of IPO proceeds were from Private Equity (PE) and Venture Capital (VC)-backed companies, up from just 9% in 2023. This trend highlights the importance of financial transparency and profitability metrics, as companies must demonstrate clear paths to sustainable growth. In this volatile market, an adaptive IPO strategy focused on market readiness, financial transparency, and a deep understanding of regional economic conditions is critical for success. #startupadvisory #businessadvisory #entrepreneurship #startupgrowth #businesstips #smallbusinessadvice #founders #scaleup #venturecapital #angelinvestors #businessstrategy #growthhacking #marketingtips #digitalmarketing #leadershipdevelopment #innovation #productivity #financialmanagement #successmindset #networkingtips #RaadhiAdvisors