Growth Outlook
Monarch Equity is optimistic about its growth prospects in upcoming years owing to a combination of factors that will support economic growth, encourage business expansion, and increase appetite for IPOs and M&As, all of which will boost demand for the Company's services.
The positive predictions that have been made by reputable analysts include:
Robust Growth in ASEAN and the Asia-Pacific
The IMF forecasts growth of 4.2% for Asia-Pacific economies in 2024, which is markedly better compared to the 2.9% predicted for the global economy. ASEAN in particular is a particularly bright spot, with S&P Global stating that the group of nations is 'one of the fastest growing regions of the global economy and an increasingly important growth engine for the Asia-Pacific. These improved conditions can be partially attributed to slowing inflation, which, apart from incentivising consumption, has persuaded many central banks to stop increasing borrowing costs and even begin cutting rates. In a healthy economy with stable inflation and lower borrowing costs, businesses naturally seek more opportunities to expand, which requires a significant amount of resources - a need Monarch Equity, strategically located in the heart of ASEAN, is well positioned to fulfil with its financing, business development, pre-IPO, and M&A services.
A Recovering Technology Sector
After a turbulent few years, the technology sector is expected to outperform the broader market in what could be the start of a potential upswing in the global technology cycle, as predicted by industry insiders and experienced market observers such as leading chipmaker TSMC, renowned investment firm Franklin Templeton, and trading platform IG International. Increased business activity in this sector, especially among ventures specialising in generative Al, bodes well for Monarch Equity as it will inevitably lead to an uptick in demand for most services offered by the Company.
A Rebound In the IPO Market
Leaders of the two largest stock exchanges by market capitalisation in the world - namely, NASDAQ CEO Adena Friedman and NYSE vice-chair John Tuttle - have expressed confidence that IPO activity will return to the mean in 2024 following an abysmal 2022 and 2023, with Friedman also announcing that nearly 100 companies have already filed confidentiality to hold IPOs on NASDAQ this year. Any increase in IPO activity, particularly in relation to NASDAQ, will result in more opportunities for Monarch Equity's main business segment.
An Upswing in M&A Activity
The number of recorded M&As cratered in 2023 along with the number of IPOs. Nonetheless, in an encouraging development for Monarch Equity, researchers from PwC and Morgan Stanley agree that a recovery mirroring that of the IPO market is due in 2024 as CEO confidence rises and borrowing costs fall. In fact, certain sectors, including technology, have already witnessed an increase in dealmaking activity from Q4 2023 onwards, lending credence to these optimistic projections.
