"It is an encouraging year for IPO performance in Singapore. The IPO funds raised increased by more than four-fold compared to the previous year, despite the subdued IPO activities across other major exchanges like the New York Stock Exchange, NASDAQ and the London Stock Exchange."
It has been an encouraging year for the Singapore capital market amidst the global uncertainties. Singapore saw a total of 11 IPOs with 4 listings on the Mainboard and 7 on the Catalist Board with total funds raised at S$3.07 billion and S$60 million respectively, based on YTD 30 November 2019 (YTD 2019).
While SGX has put in much effort to draw companies looking to list, they are also facing increasing competition from regional bourses such as those in Hong Kong, Malaysia and Thailand.
The Stock Exchange of Hong Kong (HKEx) continues to attract companies with its perception on higher valuations and liquidity as compared to the SGX, with nine Singapore companies listing on the HKEx in 2019. The YTD 2019 closing prices of most of these Singapore companies were lower than their listing prices
Bursa Malaysia and The Stock Exchange of Thailand have also taken strides to attract more domestic and regional IPOs, competing with SGX.
"Looking forward, I expect 2020 to be a busier year for IPOs in Singapore. REITs and business trusts will continue to anchor the Singapore's capital market as investors search for yield, given the expected continuation of trade tension, geopolitical events and the forecasted low interest rate environment. We expect more local companies seeking listings on Catalist and a few larger size Mainboard listings in healthcare and food and beverage sector which are traditionally known to be "strongest" of the sectors in SGX."
Tham Tuck Seng, Capital Markets Leader, PwC Singapore
Assurance Leader, PwC Singapore
Tel: +65 6236 3678
Partner, Assurance - Capital Markets, PwC Singapore
Tel: +65 9731 4358
Partner, Capital Markets, PwC Singapore
Tel: +65 9112 7130