Can Singapore's stock exchange compete with Hong Kong's IPO market?

Economic Times

30-07-2025

IFBH and Mirxes chose Hong Kong over Singapore for IPOs, highlighting the valuation and liquidity strengths of the Hong Kong stock exchange over the Singapore Exchange (SGX)
Singapore faces increasing challenges in attracting initial public offerings (IPOs), as more companies choose Hong Kong for its market depth and valuation potential. IFBH, a Singapore-incorporated Thai company and the world's second-largest coconut water bottler, recently launched a HK$1.16 billion (US$147 million) IPO on the Hong Kong stock exchange. The company initially planned to list in Singapore but shifted to Hong Kong, citing strong connections to mainland China, its key market.The IFBH listing follows the successful debut of Mirxes, a Singapore-based biotechnology firm that raised HK$1.09 billion in its May IPO, with its share price rising 28.8 per cent on the first day. Both companies underscore Hong Kong's IPO market advantage.
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According to the London Stock Exchange Group, Hong Kong raised US$13.2 billion from 38 IPOs this year, compared with a single US$4.5 million listing on the Singapore Exchange (SGX). In 2023, Hong Kong saw 67 IPOs raising US$11.3 billion, while Singapore posted four listings totaling US$34.2 million. Despite these trends, analysts and officials indicate that Singapore is taking active steps to boost its IPO market appeal. The Singapore government recently introduced multiple incentives, including a 20 per cent tax break and incentives for funds to invest in local equities.'That was a good shot in the arm to provide added confidence for issuers to consider Singapore,' said Anuruk Karoonyavanich, global head of equity capital markets at DBS.
Liquidity remains a significant constraint for SGX. Singapore's market capitalization is approximately US$488 billion, with a daily trading volume near US$1.1 billion, compared with Hong Kong's US$6.5 trillion market capitalization and US$30 billion daily volume.Also read: Hong Kong's sixfold jump in share sales drives boom year in Asia'If you look at Singapore-listed companies, over 60 or 70 per cent are controlled by Temasek or GIC,' said Frank Bi, head of corporate transactions at Ashurst in Hong Kong. This level of state involvement may discourage a market-driven IPO environment.Despite current disparities, analysts see potential for SGX. Mirxes is planning a dual listing on SGX's main board. China Medical System, listed in Hong Kong, also announced plans for a secondary listing on SGX.Japanese telecom operator Nippon Telegraph and Telephone recently filed to list a data center REIT on SGX, potentially raising US$1 billion, the largest listing on the exchange in four years.Karoonyavanich emphasized that companies with regional strategies, particularly those focused on Southeast Asia, are likely to consider Singapore as a viable listing venue. He pointed to increasing capital inflows from family offices and high-net-worth individuals as a potential driver of market growth.Morgan Stanley projected Singapore's market capitalization could double by 2030, driven by increased returns on equity, a strong tech startup ecosystem, and proactive government reforms.
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'The trend is that everybody wants to raise international capital and grow regionally,' Karoonyavanich said. In that context, both Hong Kong and Singapore are positioned to benefit within the Asia-Pacific region.