The year 2024 has witnessed a surge in initial public offerings (IPOs), predominantly centered in the Asia Pacific region, with India emerging as the frontrunner. Data compiled by Bloomberg reveals that, of the 38 global IPOs in the past two weeks, a staggering 34 occurred in Asia Pacific. In contrast, the Americas saw three newcomers, the Middle East witnessed one, and Europe had none, according to the data.
India has notably taken the lead in this IPO boom, extending its record from the previous year. Companies are capitalizing on elevated valuations driven by a fervent equities market and promising earnings outlook. While China, known for larger average listing sizes, is gradually recovering from last year’s decline, marked by economic challenges and increased regulatory scrutiny.
As the year progresses, there is anticipation of a potential boost in IPOs across Asia, driven by fewer economic constraints. India, in particular, stands out with a plethora of intriguing companies poised to bring billion-dollar IPOs to the market in 2024, as mentioned by Udhay Furtado, Co-Head of ECM Asia Pacific at Citigroup, in an interview with Bloomberg Television.
Market experts in the Asia equity capital space foresee India maintaining its status as one of the most active markets throughout the year. Ola Electric Mobility, the largest electric-scooter company in the country, is expected to announce a substantial deal in the current quarter, aiming to raise 55 billion rupees ($664 million).
Adding to the IPO fervor, Jyoti CNC Automation, a Gujarat-based manufacturer of metal cutting CNC machines, commenced trading in Mumbai today after a successful 10 billion rupees offering that was oversubscribed 38 times. This IPO ranks as the second-largest in India this year, following Sustainable Energy Infra Trust, which raised $273 million in its Monday listing.
