On January 23, Citi announced its anticipation of a heightened fundraising trend for tech companies in Asia up to 2025, driven by advancements in artificial intelligence and notable activity in India and Taiwan. The bank foresees a minimum 10% surge in fundraising volumes within the technology, media, and telecom sector in Asia this year, surpassing the $70 billion mark recorded in 2024.
Ho-Yin Lee, Citi's Head of Technology & Communications Investment Banking in Asia based in Hong Kong, highlighted that AI-driven initiatives, encompassing hardware supply chain and digital infrastructure like data centers, towers, and fiber optics, will remain fundamental in driving funding activities. Lee emphasized the significance of the AI theme and its continuing dominance, foreseeing a shift towards practical applications and the financial benefits AI can offer to companies.
Regarding the potential return of Donald Trump to the U.S. presidency and its implications for the AI sector, Lee expressed confidence that companies are better positioned to navigate any policy impacts. Trump recently unveiled plans for private sector investments to fuel AI infrastructure.
Lee also indicated a positive outlook for deals in India, with strong ongoing activity expected in Taiwan’s hardware supply chain. Furthermore, he anticipated a release of some long-awaited initial public offerings in Hong Kong.
While new listings across the Asia-Pacific region experienced a 33% decline in total fundraising in 2024 compared to the previous year, with China's participation decreasing by 74%, Citi notably assisted Asian clients excluding Japan in raising $4 billion through equity share sales and $2 billion through debt issuance. Citing industry figures, the company mentioned that its total funds raised for the region ranked highest among its banking peers, inclusive of facilitating major transactions such as Alibaba's acquisition and Taiwanese firm WT Microelectronics' investment in Canada's Future Electronics totaling $3.8 billion.