COVID-19 has caused a slowdown in Singapore Initial Public Offering (IPO) activities. There were only six IPOs, raising a combined funds of S$0.7 billion, for the period from 1 January 2020 to 26 June 2020, which was a decline as compared to eight IPOs, raising a combined funds of S$1.5 billion for the same period last year.
Following the trend, the number of follow-on (FO) activities in Singapore have decreased to four for the period from 1 January 2020 to 31 May 2020, from 10 in the same period last year. Fund raise via FO transactions have also fallen from S$1.7 billion in the prior period to S$0.4 billion for the current period of 1 January 2020 to 31 May 2020.
“With the easing of Circuit Breaker measures and fiscal stimulus provided by the local government, the Singapore equity markets should see some short term recoveries. However, we believe that the ability of sustainable recovery in the local market will be dependent on how soon global trade activities will resume given that Singapore’s economy is closely intertwined with global supply chains.
We foresee healthcare and niche sectors within the technology space to spur the growths for the local equity capital market. S-REITs will also continue to pivot the local IPO market, although S-REITs with assets exposure to the retail and hospitality sectors could have a longer recovery path.”
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