Key industries to drive IPO market growth in 2024

Healthcare, education, and AI-related industries are expected to propel the growth.

Significant opportunities are still expected in the IPO market next year despite the rising interest rates with the help of the ASEAN economy, Southeast Asia firms, and its key industries.

Henry Tan, CLA Global TS Holdings CEO and Chief Innovation Officer, said that the IPO market climate in 2024 will be in favor of the healthcare, education, and technology sectors such as AI.

“We all know that there is a rising interest rate,” he explained, “On the flip side, we also see, including the ASEAN economy, and the strength of the Southeast Asia firms. And I think because of that, there will be significant opportunities where the IPO market will improve in 2024.”

Tan said that he is hoping to see the return of a stabilized interest rates regime and real estate investment trusts make its comeback to the market to help amplify the IPO market's potential in 2024.

“I think we all know that companies like real estate are facing a lot of headwinds in 2023. We think that as we continue the easing of the interest rate, and hopefully stabilize the interest rate, we could see some of these real estate investment trusts, REITs, coming back into the market, and we hope that will be true,” he cited.

Tan said the industries who will potentially face challenges next year include the export-oriented firms in China, which are turning inwards into their economy, and markets struggling with the aftermath of a poor tourist influx due to the pandemic.

“I was traveling in Korea, we noticed that quite a lot of F&B outlets have been closed, and the reason is actually a result of the pandemic, people are working more at home,” he shared, “Obviously, if they're working from home, they wouldn't be going to the nearby food as well as baths to to have their after work, drinks and so on. And that that sector would be significantly affected because of the changing tendency, and also structures.”

Tan said that given Singapore's stature as a relatively smaller market, it's vital for companies to be cognizant of sectors and align with investor preferences, emphasizing the importance of preparation beyond recognizing market trends.

“Many companies did not do that. Well, it's because that preparation is not in good stead and of course, for us as a global team as we always look to helping our clients to continue that growth and create those opportunities for them,” he said.