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March 28, 2022

South East Asian TMT IPO market is getting stronger

South East Asian countries are witnessing rapid internet adoption, a trend that was accelerated further by the Covid-19 pandemic. Tech, media, and telecom (TMT) companies in Indonesia, Singapore, Thailand, Malaysia, and Philippines are  amongst those benefitting from this trend.

2021 was the strongest year for the TMT IPOs in the South East Asian countries since 2018

Between 2018 and 2021, there were 34 TMT IPOs in these South East Asian countries. These TMT companies raised total proceeds of $8.8 billion in their listings. 2021 was the strongest IPO year for the TMT companies in the region since 2018. The total proceeds of TMT IPOs was 6.6 times higher in 2021 as compared to 2020.

Indonesia and Singapore have emerged as the fastest growing digital economies in South East Asiahelped by rapid internet adoption by their youthful population. This has immensely benefitted domestic TMT start-ups, many of which have seen successful listings. Between 2018 and 2021, Indonesia saw 16 TMT listings and the total IPO proceeds stood at $3.1 billion. Over the same period, Singapore saw eight TMT listings and the IPO proceeds stood at $5.1 billion.

Ecommerce drove the biggest IPOs in the region

The start-ups operating in key digital themes in the region are the ones driving the TMT IPOs in the region. Super app providers have come out of the pandemic in a strong position and are ready to raise new funds by going public. Grab’s successful listing is one of the best examples.

The Singapore-based ride-hailing company merged with a special purpose acquisition company (SPAC) to go public at a valuation of $40.5 billion on the Nasdaq. Indonesian e-commerce company Bukalapak also saw a successful listing in August 2021, where it raised $1.5 billion at a valuation of $6 billion. Mobile was the next big theme driving the market. In 2021, Indonesian telecom tower provider Mitratel went public raising $1.3 billion. Converge ICT, a telecommunication service provider in the Philippines also joined the IPO club in 2021.

IPO momentum in the South East Asian continues to be strong in 2022

The TMT IPO market will continue to be strong in the South East Asian countries. Indonesia-based ride-hailing giant PT GoTo Gojek Tokopedia Tbk (GoTo) has announced its plans to go public at a valuation of $1.1 billon.

GoTo was formed via a merger between ride-hailing giant Gojek and marketplace Tokopedia in May 2021. It is a leading super app in Indonesia, having expanded into digital payments, mobile gaming and digital media. The company has grown geographically with operations in both Singapore and Vietnam. Thailand’s ecommerce player aCommerce has also filed for an IPO. We expect more listings driven by the digital themes in the region over the coming year.