India dominated the Asia-Pacific region's initial public offering (IPO) market as more than 200 companies went for public issues in 2024, said a report on Friday.
However, China witnessed a sharp decline in the number of IPOs by 51.3 per cent, impacted by tightened regulations. The country witnessed the launch of 64 IPOs raising just over $5.2 billion.
India's IPO market has hit a bull run this year, with the proceeds surging to $11.2 billion-more than double the $5.5 billion raised in 2023, according to GlobalData, a leading data and analytics company.
The pipeline for 2025 promises even bigger fireworks, fueled by skyrocketing retail participation, hefty domestic inflows, and foreign portfolio investors (FPIs) flexing their muscles despite being net sellers in the secondary market," said Murthy Grandhi, company profiles analyst at GlobalData.
Hyundai Motor (KS:005380) took the lead here in India with a colossal $3.3 billion issue, followed by $1.3 billion through Swiggy's initial public offering. Other such major issues include NTPC (NS:NTPC) Green Energy's $1.2 billion IPO, Vishal Mega Mart's offer of raising $0.9 billion, and Bajaj Housing Finance's $0.8 billion issue.
This blockbuster year reflects issuers' confidence and an insatiable appetite in investors for listing-day pops and long-term growth plays in the country.
According to Grandhi, surging private capital expenditure and the government's laser focus on infrastructure and core sectors added the perfect recipe for capital market dynamism.
"India's IPO boom is more than just a numbers game — it's a testament to the resilience and evolution of its financial ecosystem, positioning it as a global hotspot for fundraising action," the analyst noted.
The IPO market in the Asia-Pacific (APAC) has proven to be very resilient, with its upward trend throughout 2024 despite high inflation and geopolitical tensions.
The APAC market had a noticeable increase in the number of IPOs in 604 listings worth $33.9 billion, which represents 21.5 per cent more in IPO proceeds compared to 2023.
The technology and communications sector dominated the APAC IPO market, with 118 deals worth $3.8 billion in total, while financial services ranked second at 60 deals worth a total of $2.6 billion.
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