Several Southeast Asian companies are considering listing in the United States as Chinese firms have slowed down their IPOs in the U.S. due to political tensions and increased scrutiny from Beijing. Funding Societies, Gushcloud International, and Sunday, three Southeast Asian firms, are exploring the option of listing in New York. Additionally, VNG Corp and Hotel101 Global have also announced plans to list in the U.S. This shift is attributed to China’s reduced influence in the ASEAN region and the economic challenges faced by Chinese companies. ASEAN countries, including Thailand, Singapore, Malaysia, and Vietnam, are now attracting investor interest due to their strong economic growth and increasing population.
Southeast Asian firms have raised $101 million through U.S. IPOs this year, significantly lower than the $919 million raised last year. However, bankers expect the pace of IPOs to increase in the next 12 months as companies seek new sources of capital. In contrast, Chinese firms have raised $463.7 million through U.S. listings this year, a fraction of the amounts raised in 2021 and 2020. Analysts believe that Southeast Asia offers attractive investment opportunities for investors seeking exposure to emerging markets, given the region’s economic growth.
The U.S. offers several advantages for companies considering IPOs. Funding Societies and Gushcloud International highlight the deep pool of capital and global investor base available in the U.S. market. Sectors such as logistics, technology, mining, electric vehicles, and renewable energy are expected to see IPO activity in Southeast Asia. International investors recognize the value of diversifying their portfolios with Southeast Asian investments.
However, analysts caution that share volatility and stringent investor scrutiny could pose challenges for Southeast Asian listings. Vietnamese electric vehicle maker VinFast experienced significant volatility since its debut in August. Despite this, most U.S. investors are experienced in evaluating opportunities across different sectors. Southeast Asian companies may need to educate investors on country-specific factors that could impact their business.
In conclusion, Southeast Asian companies are increasingly considering U.S. IPOs as Chinese firms reduce their presence in the U.S. market. The region’s strong economic growth and attractive investment opportunities make it an appealing destination for investors. However, challenges such as share volatility and investor scrutiny need to be navigated carefully.
