SGX ranked as world's tenth best IPO bourse by proceeds in Q2: study

Its main and junior markets accounted for 61% of ASEAN’s IPO proceeds.

Singapore Exchange (SGX) snagged the 10th place amongst global exchanges by IPO proceeds in Q2, thanks to two sizeable listings by real estate investment trusts, according to a study by Ernst & Young.

SGX led by proceeds in the ASEAN region as its main and junior markets together accounted for 61% of the region’s proceeds and 17% by deal number. The two REITs listings were ARA US Hospitality Trust and Eagle Hospitality REIT.

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ASEAN deals more than doubled (53% QoQ) to 29 IPOs in Q2 from Q1 whilst proceeds rocketed 447% to $2.3b (US$1.7b).. On a YTD basis, the region had 48 IPOs, raising $2.7b (US$2b) in proceeds. However, despite the rise in deal volumes and amount of proceeds, ASEAN deals showed an 8% decline in deal volume and a 55% plunge in proceeds, as compared to H1 2018.

“The notable increase in small-cap listings consolidates the view that there is still a general propensity for entrepreneurial companies to go public,” Max Loh, EY Asean and Singapore managing partner at Ernst & Young, said.

In addition, Asia-Pacific continued to dominate global IPO activity YTD 2019 by volumes, representing six of the top ten exchanges. In terms of proceeds, the region accounted for three of the top ten exchanges. Asia-Pacific’s main markets experienced average first-day returns of around 19% and average current returns of 34%, illustrating that IPO performance continues to elevate IPO investor sentiment, the report continued.

Mainland China exchanges saw 27% YoY more IPOs (33 IPOs) in Q2 from Q2 2018, but a 38% decline in funds raised $6.9b (US$5.1b) due to a lack of mega IPOs. Meanwhile, Japan’s IPO markets remained stable in YTD 2019, posting a slight increase in deal numbers compared with YTD 2018. There were 41 IPOs in YTD 2019, up from the 39 IPOs in YTD 2018 whilst its proceeds hit $1.8b (US$1.3b), lower than $3.8b (US$2.8b) in YTD 2018.