Mirage or manna: Asia’s tech IPO hopes swell in 2025

Over the last few years, predictions of IPO activity for the year ahead felt like seeing a mirage in the desert. A shiny object from afar, full of promise, that disappears as one gets closer.

This applied to 2024. At the end of 2023, bankers in the Asian equity capital markets were “hopeful for a better year in 2024.”

Ultimately, IPO activity in Asia last year disappointed, with a 35% decline in the number of deals and a 51% fall in proceeds compared to 2023. The only bright spots were India and Malaysia.

Yet, like thirsty wanderers in a desert, startup founders and investors are hoping for 2025 to bring respite.

This time, things might finally be looking up.

Image credit: Timmy Loen

Ecommerce solutions provider SCI Ecommerce is reported to be working with financial advisers on a Singapore IPO that could value the company at more than US$1 billion.

More recently, Indonesian digital bank Superbank, which is backed by Grab and Singtel, was reported to be exploring a Jakarta listing that would raise between US$200 million and US$300 million, and value it at up to US$2 billion.

See also: Amid losses and market decline, can Superbank justify an IPO?

Analysts Tech in Asia spoke with expect to see more IPOs this year, especially from the fintech and ecommerce sectors. However, do not expect all Asian markets to perform equally well.

Don’t write off Hong Kong

“India and China markets could stand out [this] year because there seems to be a stronger appetite and ability to get higher valuations for overall new listings and tech IPOs,” says Sufianti, an equity strategist at Bloomberg Intelligence.

While 2024 was dominated by news of the sluggish Chinese economy, its tech IPOs put in a stellar performance.

Sufianti notes that the median return for tech companies in China after going public on the Shanghai and Shenzhen stock exchanges in 2024 was nearly 200%. This was much higher than the median return for all new listings in the country last year, which stood at 74%.

Chinese tech players expected to go public in 2025 include AI chipmakers Shanghai Enflame Technology and Biren Intelligent Technology, which are expected to IPO on Shanghai’s Star board, which seeks to attract tech and innovation companies.

Low-valuation advantage for SEA?

Spoiler