Singapore issuers raised $5.66b from 35 IPOs in 2017

It's the highest in 13 years.

Singapore issuers smashed a 13-year record when they raised $5.66b (US$4.2b) from 35 initial public offerings (IPO) in both domestic and international exchanges, Ernst & Young LLP (EY) revealed.

According to its global IPO trends report, the value of the IPO proceeds was significantly higher than the $2.29b (US$1.7b) raised from 58 IPOs in 2004.

Moreover, Singapore issuers accounted for 2.2% of global IPO proceeds in 2017 — a sharp rise from 1.8% in 2016. EY said the rise was boosted by strong national economic growth.

The fourth quarter was a bumper quarter where 15 IPOs by Singapore issuers raised $2.83b (US$2.1b), the highest deal number since Q4 in 2004.

A majority or 57% of local companies chose to list on overseas exchanges in 2017. In Q4, 11 out of 15 IPOs were cross-border listings.

The Singapore Exchange (SGX) also delivered a stellar performance and raised with $4.31b (US$3.2b) from eight deals, one of the highest in the ASEAN region.

EY also found that the pipeline for 2018 IPOs by ASEAN issuers appears even stronger than in 2017, with total proceeds set to increase if the region’s economy holds up.

Max Loh, EY ASEAN and Singapore managing partner, Ernst & Young LLP, commented, "Although it (Singapore) enjoys a leading position as one of Asean's top international exchanges, in 2018 it will face competition from other exchanges around the world that are bidding for listings in this promising region."

Active sectors are likely to include real estate, consumer-facing industries, and technology, EY said.