AI-driven initiatives, particularly in hardware supply chains and digital infrastructure, are expected to drive significant investment in the Asian tech sector this year, according to Citi.
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| Citi, which assisted in raising $6 billion for Asian tech clients in 2024, anticipates a strong year for tech fundraising in Asia, driven by AI and robust growth in key markets. Symbolic Image |
Hong Kong — January 23, 2025:
Citi expects a surge in fundraising activity for technology companies in Asia this year, driven by the burgeoning AI sector and robust growth in key markets like India and Taiwan.
The investment bank, a leader in tech fundraising across Asia (excluding Japan), anticipates at least a 10% increase in fundraising volumes in the technology, media, and telecom (TMT) sector this year, building upon the $70 billion raised in 2024.
AI-driven initiatives, particularly those focused on hardware supply chains and digital infrastructure such as data centers and fiber networks, will continue to be a major driver of investment. "The AI theme is very important and will continue to dominate," said Ho-Yin Lee, Citi's Hong Kong-based Asia investment banking head of Technology & Communications. "I think this year we are going to see more focus... around practical applications and the benefits AI can create for a company's financials."
Lee noted that companies are better prepared for potential policy shifts in the U.S., following the recent announcement of a private sector investment of up to $500 billion to fund AI infrastructure.
India is poised for continued strong growth, while the hardware supply chain in Taiwan is also expected to remain robust. In Hong Kong, Lee anticipates a resurgence in IPO activity, with several deals expected to come to market after a period of relative inactivity.
This optimistic outlook for Asia contrasts with the weakness observed in pan-APAC new listings, which saw a 33% decline in total fundraising in 2024 compared to the previous year. China, a significant contributor to regional dealmaking, experienced a sharp 74% decline.
Citi played a pivotal role in Asian tech fundraising in 2024, assisting clients in raising $4 billion through equity share sales and $2 billion in debt issuance. This includes notable transactions such as Alibaba's $5 billion convertible bond issuance and Taiwanese firm WT Microelectronics' $3.8 billion acquisition of Canada's Future Electronics.