SINGAPORE – Only one company braved a listing here in the first half of 2024, making Singapore the worst-performing market in South-east Asia for initial public offerings .
By comparison, Malaysia listed 21 companies, which raised around US$450 million in all, making it the region’s top IPO market in the first half of 2024.But the wider picture is less rosy as just 67 companies have gone to market in South-east Asia in the six months to June 30, compared with 85 in the same period in 2023, representing a 21 per cent drop.
The lack of new listings in Singapore comes after a slew of grants and incentives that have been made available to IPO aspirants. Despite these efforts, five Singapore-based companies have opted to list on stock exchanges in the United States instead of the SGX this year, compared with just one that listed at home.
Some are proposing that the Government reviews its investment mandate with GIC to consider allowing the sovereign wealth fund to invest in local stocks. Still, Prime Minister Lawrence Wong noted in replies to parliamentary questions on May 8 that firms are staying private for longer given higher interest rates, and those that choose to go public tend to gravitate to the US due to its deep and liquid capital markets and investor base.