Local IPO market roars back to life as oil prices recover

Overall IPO activity surged 43% in 2016.

Singapore’s IPO scene booked an impressive recovery in 2016, reversing months of a fundraising drought. Data from BakerMcKenzie showed that overall (cross-border and domestic) IPO activity of Singaporean companies increased by 43% in terms of volume and 560% in terms of capital raised this year.

Despite a slow start in 2016, IPO activity increased when crude oil prices improved. Domestic IPO value stood at US$1.73 billion this year, a far cry from just US$305.3 million in 2015.

Across the region, Asia Pacific IPOs declined in volume and value for both cross-border and domestic deals for the first time since 2013. The region still accounted for 76% of all cross-border equity deals, with companies listing in Australia, Hong Kong and Singapore.

All 10 largest CB IPOs globally were by Asian issuers and 8 were Chinese companies in HK IPOs. Three quarters of all CB IPOs on HK stock exchange.

Outside banks, the consumer products and services sector had the highest growth rate for capital raised in 2016 from cross-border IPOs, with an increase of 1,090%, this was followed by real estate and energy and power with an increase of 165% and 24% respectively.