Southeast Asia IPOs rebound in second half, raising $4.5bn

Southeast Asian IPO markets staged a strong recovery in the second half of 2025, with companies raising $4.5 billion through initial public offerings—a 120% increase compared to the same period in 2024. The rebound was led by real estate investment trusts (REITs) in Singapore and securities firms in Vietnam, as market reforms and improving investor sentiment drove renewed interest in regional listings.

Singapore's REIT market dominated the region's IPO activity, with the top two offerings by amount raised both being REITs. This reflects the city-state's continued strength as a regional financial hub and the attractiveness of its REIT sector to both local and international investors. The Singapore Exchange has been actively promoting REITs as a key asset class, and the strong performance of recent listings suggests the strategy is paying off.

Vietnam's securities sector also saw significant IPO activity, with several firms going public as the country continues its market liberalization efforts. Vietnam's stock market has been working to improve corporate governance standards and attract more foreign investment, and the successful IPOs of securities firms indicate growing confidence in the country's financial sector.

The recovery comes after a challenging first half of 2025, when global economic uncertainty and regional market volatility dampened IPO activity. The second-half rebound suggests that Southeast Asian markets are regaining momentum, though they still lag behind other Asian markets like Hong Kong and mainland China, which saw strong IPO activity throughout the year.

Market reforms across the region have played a crucial role in spurring listings. Singapore has been working to streamline its IPO process and attract more technology companies, while Vietnam has been opening up its financial sector to foreign investors. These reforms, combined with improving economic fundamentals in several Southeast Asian countries, have created a more favorable environment for companies looking to go public.

The strong performance of REITs and securities firms in the IPO market also reflects broader trends in Southeast Asian economies. Real estate remains a key driver of growth in many regional markets, while the expansion of financial services is supporting economic development and attracting investment.

Looking ahead, market participants are optimistic about continued IPO activity in 2026, though they caution that global economic conditions and regional political developments could impact sentiment. The success of the second-half rebound suggests that Southeast Asian markets have the potential to become increasingly important venues for IPOs, particularly as companies seek alternatives to more saturated markets in the US and China.

The recovery in Southeast Asian IPOs is part of a broader trend of regional markets gaining prominence in the global financial landscape. As companies increasingly look beyond traditional listing venues, Southeast Asia's improving regulatory environment and growing investor base make it an attractive option for both issuers and investors.