Booming equity deals face growing tech uncertainty

Asia is on track for a robust wave of initial public offerings (IPOs) next year, with many companies in China and India preparing to raise funds. Investment bankers say the region’s equity deals pipeline has hit a two-year high, as firms rush to capitalize on investor appetite for growth. But in 2026, concerns over inflated valuations in artificial-intelligence (AI)–driven firms may put a damper on the excitement and cool momentum.

The surge reflects companies’ eagerness to tap deep capital pools and expand operations — especially in sectors like manufacturing, fintech and green infrastructure. Still, the sharp rise in AI-related valuations has some analysts cautioning that investors may soon grow wary. If AI hype fades or regulatory scrutiny intensifies, many IPOs could struggle to fetch high valuations. Observers say the next 12 months will test whether Asia’s capital markets can sustain growth without repeating past bubbles.