Vietnam VS Thailand VS Indonesia – IPO Market Winner Is?
Reading Time: 1 minuteBull in front of the Hanoi Stock Exchange © Arno Maierbrugger
Vietnam in 2018 topped Southeast Asia’s top grossing market for initial public offerings (IPOs) with total proceeds of $2.6 billion.
Singapore, who lost its crown to Vietnam, dropped to fourth position this year with total IPO value of just $531 million, seeing total funds raised on the Singapore stock exchange falling by 84 per cent, mainly owing to the US-China “trade war” and rising interest rates.
Thailand ranked second with total proceeds of $2.5 billion and Indonesia was in the third place with $1.2 billion, data from global consulting firm Ernst and Young (EY) showed.
Large Vietnamese IPO deals came about after the authorities in Hanoi began a long-awaited privatisation drive. The five biggest IPOs of state-owned enterprises have raised more than $821 million. They included PetroVietnam Power Corp, Binh Son Refining and Petrochemical Corp, PetroVietnam Oil Corp, Vietnam Rubber Group and Vietnam Southern Food Corp.
The $1.35 billion IPO by privately-owned firm Vinhomes, a real estate arm of Vingroup, was the biggest ever in the country and ASEAN’s second-largest of 2018
In the next three years, with more state-owned enterprises are slated for being equitised in Vietnam. The country is expected to remain at the top of Southeast Asia’s IPO league, analysts say.
Big IPOs in 2019 will likely include Mobifone, Vietnam Posts and Telecommunications Group, EVNGenco 1 and 2 and Agribank.