Jan 23 (Reuters) - Citi expects increased momentum in

Asian fundraising for tech companies into 2025, driven by

developments in artificial intelligence and robust activity in

India and Taiwan, the Wall Street bank said on Thursday.

The bank, which raised the most funds for tech companies in

Asia outside Japan, estimated at least a 10% increase in

fundraising volumes in the technology, media and telecom sector

in Asia this year, from $70 billion in 2024.

AI-driven funding, including hardware supply chain and

digital infrastructure such as data centres, towers and fibre

will continue to underpin issuance, said Ho-Yin Lee, the bank's

Hong Kong-based Asia investment banking head of Technology &

Communications.

"The AI theme is very important and will continue to

dominate," Lee told Reuters. "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 said companies were better prepared for Donald Trump's

return to the U.S. presidency and the potential impact of his

policies on the AI sector.

Trump announced on Tuesday a private sector investment of up

to $500 billion to fund AI infrastructure.

Lee said the outlook for deals in India will continue to be

strong and activity in the hardware supply chain in Taiwan is

also expected to remain robust. In Hong Kong, he expects a few

initial public offerings that were in the backlog coming to the

market.

The anticipated growth in Asia comes against weakness seen

in the pan-APAC new listings, when total fundraising dropped 33%

in 2024 from a year ago with China - once a pillar underpinning

regional dealmaking - declining 74%.

Citi assisted Asian ex-Japan clients in raising $4 billion

through equity share sales and $2 billion in debt issuance in

2024, with the total funds raised ranking top in Asia ex-Japan

compared with rival banks, the firm said, citing industry data.

This includes Alibaba's ( BABA ) $5 billion convertible

bond issuance and Taiwanese firm WT Microelectronics'

acquisition of Canada's Future Electronics in a $3.8 billion

deal.