Tech Fundraising in Asia to Accelerate Through 2025: Citi
New York, January 26, 2023 - Citi anticipates a surge in fundraising for tech companies in Asia extending into 2025. This growth will be fueled by advancements in artificial intelligence (AI) and robust activity in India and Taiwan.
As the leading fundraiser for tech companies in Asia excluding Japan, Citi estimates a minimum 10% increase in fundraising volumes in Asia's tech, media, and telecom (TMT) sector this year, up from $70 billion in 2024.
"AI-driven funding, including hardware supply chain and digital infrastructure, will continue to drive issuance," said Ho-Yin Lee, Citi's Head of Technology & Communications, Asia Investment Banking. "AI remains a dominant theme and will continue to shape the sector."
Lee emphasized that companies are better positioned for the potential impact of Donald Trump's return to the U.S. presidency on the AI sector, highlighting Trump's recent announcement of $500 billion in private sector investment for AI infrastructure.
India is expected to maintain strong dealmaking prospects, while Taiwan's hardware supply chain activity is projected to stay resilient. In Hong Kong, Lee anticipates a few initial public offerings (IPOs) that were previously backlogged coming to fruition.
Asia's growth trajectory contrasts with the broader Asia-Pacific (APAC) IPO market, where fundraising experienced a 33% decline in 2024 compared to the previous year, with China seeing a significant 74% drop.
Citi assisted Asian non-Japanese clients in raising $4 billion through equity share sales and $2 billion in debt issuance in 2024, maintaining its top ranking in Asia excluding Japan. Notable transactions included Alibaba's $5 billion convertible bond offering and Taiwanese firm WT Microelectronics' $3.8 billion acquisition of Canadian company Future Electronics.