Equity capital markets activity across Asia is on course to challenge the region's 2021 record for share sales, Reuters reports, as the artificial-intelligence boom fills the deal pipeline with follow-on offerings, initial public offerings and convertible issues.

The 2021 vintage remains the benchmark. That year, Asian listings and secondary sales set a post-financial-crisis high, driven by China's technology sector and a global liquidity surge. Bankers and investors now see a credible challenge to that peak, according to Reuters, because the current cycle rests on a different engine: spending tied to AI infrastructure, semiconductors, data centers and the supply chains behind them.

The pipeline itself is the strongest signal. Companies tied to the AI buildout — from chip suppliers to component makers and data-center operators — are lining up to raise equity capital while valuations hold. That reverses the caution that defined 2022 and 2023, when rate hikes, China's property crisis and weak IPO windows froze much of the region's issuance.

Market watchers cited by Reuters point to the volume of mandates now being prepared across Asian exchanges, including Hong Kong, Japan, India, Taiwan and South Korea. The breadth matters. A record that depends on one market is fragile; a pipeline spread across several jurisdictions and sectors is harder to derail.

The AI connection runs through the supply chain. Chip designers, foundries, packaging and test providers, and the equipment makers that serve them have seen order books and share prices climb since late 2023, when demand for AI accelerators began outrunning capacity. Equity issuance lets those companies fund expansion without loading up balance sheets already stretched by capex commitments.

For investors, the calculus is straightforward. They want exposure to AI-linked growth but are demanding it at prices that reflect execution risk. Bankers told Reuters that deal structures — from cornerstone anchors to accelerated bookbuilds — are being tuned to clear the market quickly while the appetite lasts.

Risks remain. A sharp pullback in AI-related valuations, renewed currency volatility or a slowdown in China could thin the pipeline before it converts into completed deals. The 2021 record was itself broken by exactly that kind of reversal, as regulatory crackdowns and rate hikes shut the window within months.

Still, the direction is clear. If current mandates price as planned, Asia's share-sale volumes this year will approach — and may exceed — the 2021 peak, setting the stage for an even larger deal calendar should AI-related capital spending keep compounding into 2026.