Singapore IPO market remains healthy despite depressed global activity

Singapore is second top dealmaker in 3Q among Asean peers.

Unprecedented levels of geopolitical uncertainty are weighing heavily on dealmakers globally but not in the Asia-Pacific region.

The region was the stand-out performer in 3Q16 with IPO proceeds surging 138% to US$24.2bn and deal volume rising 41% to 176. The data is in stark contrast with global data of 39% decline to US$79.4bn in IPO proceeds and 23% drop in deal volumes to 704.

Although China continues to dominate, there was significant activity in Japan, Australia and South Korea. Japan, in particular, continues to see healthy IPO activity with 19 deals raising US$1.5b in 3Q16, compared to US$1.1b in proceeds through 18 IPOs in 2Q16.

Amongst the Asean exhanges, Singapore  is second  biggest contributor which closed 6 deals amounting to US$438M (S$598M). It narrowly missed the top spot occupied by Indonesia which made US$451M from 3 deals.

Other Asean exchanges which reported highest proceeds are Thailand (US$279m from 7 deals); and Malaysia (US$28m in 3 deals).

Max Loh, Asean and Singapore Managing Partner, Ernst & Young LLP, says: “Investor sentiment in Asia-Pacific is still being supported by ample liquidity in emerging markets. Cross-border listings have slowed as home exchanges have become more competitive in offering value propositions for companies to list locally.”