New SGX listings raised $3.13b in January-November 2019

A vast majority of the funds were raised by the four Mainboard-listed REITs.

The total funds raised by new listings in the Singapore Exchange (SGX) surged fourfold to $3.13b in the first 11 months of 2019, according to a report by PwC.

“The IPO funds raised increased by more than four-fold compared to the previous year, despite the subdued IPO activities across other major exchanges like the New York Stock Exchange, NASDAQ and the London Stock Exchange.” Tham Tuck Seng, PwC Singapore’s capital markets leader said.

The exchange saw a total of 11 initial public offerings (IPOs). Four were listed in the Mainboard, all real estate investment trusts (REITs), which clinched a total of $3.07b or 98.1% of total funds during the period. The remaining seven from the Catalist Board bagged $60m.

The first day closing performance saw seven of 11 IPOs closing above IPO price, whilst three closed below IPO price, noted to be similar in 2018.

Tham expects 2020 to be a busier year for IPOs in the city, with more local firms seeking listings on the Catalist Board whilst few larger-sized Mainboard listings in the healthcare and F&B sectors.

“REITs and business trusts will continue to anchor the Singapore's capital market as investors search for yield, given the expected continuation of trade tension, geopolitical events and the forecasted low interest rate environment,” he said.