IPOs in Asia Face Headwinds After Record Year of Fundraising

Thanks to a blistering first half amid a global boom, initial public offerings in the region have reached $190 billion so far this year, already a record and up 31% from the whole of 2020. But the momentum has weakened notably in recent months as Beijing escalated a regulatory assault on private enterprise, putting major deals on hold and injecting uncertainties into next year.

Bankers say they expect Asia’s IPO market to be less frenzied and more balanced in 2022, as higher inflation erodes valuations of tech firms and tighter U.S. monetary policy reduces the supply of idle cash. The listings landscape may also look more diverse, with South Korea and India charging ahead and industries from clean energy to financial services filling the void left by once-dominant Chinese tech.

Beijing’s tight scrutiny of its tech firms, on issues ranging from data security to a loophole long used by companies to list overseas, also is expected to continue to slow the pace of fundraising from the sector.