Singapore equity capital market activity crashed to 12-year low in Q1

Local firms raised a measly $146.6m.

Data released today by Thomson Reuters show that Singapore-domiciled companies tapping the equity capital markets (ECM) raised a total of $146.6 million so far this year, an 80.8% decline in proceeds compared to the first quarter of 2014 (US$764.8 million).

This is the slowest start to a year since 2003 (US$73.4 million) for Singapore ECM activity. Year-to-date, capital raisings by Singapore companies were done only through follow-on offerings.

There have been no initial public offerings from Singaporean companies in local or foreign stock exchanges so far this year compared to at least five Singaporean IPOs in the first of 2014.

ECM Issuance from Singapore’s Consumer Staples sector accounted for majority of the nation’s ECM activity with 34.7% market share and generated proceeds worth US$50.8 million.

The Materials sector followed second place with 30.5% market share with a total of US$44.7 million in proceeds. Industrials accounted for 16.1% with US$23.7 million worth of proceeds.