Skip to content

Singapore IPO market's prospects brighten but no quick fix in sight – Reuters

A man wearing a protective face mask walks past the Singapore Exchange (SGX) which stays open during "circuit breaker" measures to curb coronavirus COVID-19) in central business district area in Singapore, April 7, 2020. REUTERS/Edgar Su
SINGAPORE, Sept 22 (Reuters) – Singapore's move to launch new funds to support startups will help companies seeking IPOs, though it could take years before Singapore Exchange (SGXL.SI) might become a centre for regional tech listings, according to market players.
Despite shaping up as one of Asia's leading finance hubs, Singapore has seen a decline in listings over the past decade and failed to attract large initial public offerings.
Market participants say, though, that the setting up of two funds with S$2 billion ($1.5 billion) in capital for firms' late-stage fundraising and IPOs, coupled with blank-check companies being allowed to list in the city-state, will attract more startups to list there.
"The value proposition by the Singapore eco-system to founders and shareholders of high-growth businesses is that it will be a part of the company's journey – before, during and after the IPO," said Ho Cheun Hon, head of Southeast Asia equity capital markets at Credit Suisse.
"This should resonate with some founders and entrepreneurs, particularly the unicorns who are starting to think about public listings."
The city-state has a long way to go.
So far this year, up to September 16, just three companies have listed on Singapore Exchange (SGX), raising $239 million, according to data from Refinitiv. The amount raised is less than half the figure from the same period last year and the lowest level in six years.
By comparison, funds raised on the Malaysian bourse stands at $531 million, the Indonesian and Philippines exchanges have each attracted $2.3 billion, while the Thai bourse has topped $3.5 billion.
As Southeast Asian tech dealmaking booms, Singapore is looking to attract more attention after some major companies chose to list elsewhere in recent years.
Singapore-based gaming and e-commerce firm Sea (SE.N) listed in the United States in 2017, for example, and is now valued at $182 billion. Southeast Asian ridehailing and delivery firm Grab is also listing in the United States, via a blank-check firm, while gaming firm Razer debuted in Hong Kong in 2017.
Vinnie Lauria, a founding partner at Singapore-based Golden Gate Ventures, welcomed the government's attempts to foster startup success.
"This is another example of Singapore using capital and smart government programs to promote itself as the hub for Southeast Asia startups."
Robson Lee, a partner at law firm Gibson, Dunn & Crutcher LLP, said the Singapore market has the potential to "punch above its light weight by being better organised and coordinated to attract unicorns and high technology global corporates".
($1 = 1.3507 Singapore dollars)
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Philippines President Rodrigo Duterte said on Saturday he was retiring from politics, a surprise move that fuelled speculation he was clearing the way for a presidential run by his daughter.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved

source

답글 남기기

이메일 주소는 공개되지 않습니다. 필수 항목은 *(으)로 표시합니다