Humble Vietnam has become the top grosser for initial public offerings within South East Asia during 2018 beating close rival Singapore which till recently was regarded as Asia’s top financial hub. Even though the communist nation is considered as a risky emerging market and frontier market by several index providers it has emerged victorious. But the growth of Vietnam cannot be attributed to the fall in grace of Singapore as the latter has an open economy so is more vulnerable to international market conditions and volatile market conditions in most markets has urged several small and large IPO’s to hold their horses till next year.
Financial experts believe that the second half of 2018 was very volatile due to political tensions, trade wars and crash of crude oil prices which has impacted several economies negatively causing IPO aspirants to postpone their plans. Despite the slowdown Singapore raised around $500 million from IPO deals and two more firms that hosted impressive IPO’s after Vietnam were Thailand and Indonesia. The surprise package in this group was Vietnam which made a surprising entry with five large IPO’s this year and raised around $2.6 billion.
This growth phase in Vietnam would not have been possible without the government’s privatization drive that happened this year. The highest amount was collected by IPO of real estate firm Vinhomes which picked up $1.35 billion and is considered second largest in Southeast Asia for 2018. Experts from Baker McKenzie say that Vietnam is likely to continue this phase of growth as the government has plans to sell stake in several public firms. Along with Vietnam several nations in Southeast Asia are likely to set a blazing trail for IPO’s in forthcoming years says PricewaterhouseCoopers, that will leave Singapore far behind. The market leader had been hit by penny stock crash in 2013 and other issues in the past that has caused a slump in stocks and IPO.