Can Singapore's stock exchange compete with Hong Kong's IPO market?
Despite significant IPO momentum in Hong Kong, Singapore's stock exchange is taking steps to increase its appeal. Recent listings such as IFBH and Mirxes underscore Hong Kong's lead in market liquidity and valuation. However, incentives, regulatory reforms, and a deepening investor base could support Singapore's long-term IPO market competitiveness
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)
Hong Kong IPO market outpaces Singapore in valuation and liquidity
Tired of too many ads?
Remove Ads
Singapore implements reforms to attract IPOs
Tired of too many ads?
Remove Ads
Opportunities for growth in Singapore's IPO pipeline
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.Also read: FWD Group launches US$512 million Hong Kong IPO, targeting HK$48.3 billion valuation 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.Also read: China fashion retailer Shein to file confidentially for Hong Kong IPO in rare move, sources say '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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
27 minutes ago
- Time of India
India hardens stance on farm sector concessions as India-US trade talks stretch
India-US trade deal (Representative AI image) NEW DELHI: As India-US trade talks stretch into a new week with both sides chasing the July 9 deadline, government has hardened its stance on offering concessions in the farm sector. 'The Indian team may stay longer as crucial talks are continuing, but we don't just want to open up whatever is the demand (from the US) on agriculture as lives of millions of farmers are involved,' said a government source. Last week, India's chief negotiator Rajesh Agarwal and other officials had gone to the US on a two-day visit, but the talks have stretched as the US is also keen to conclude some deals before the pause on reciprocal tariffs – 26% in India's case -- ends in. In fact, on Thursday, US president Donald Trump had announced that a 'very big deal' with India is likely – the seventh time that he had announced an agreement. The Indian industry is also being prepared for dealing with reciprocal tariffs, in case the early tranche of the proposed bilateral trade deal does not work out. For India, a key concern is allowing lower duty import on agricultural products like maize, soybean and dairy products, which is being demanded by the US side. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending Local Enterprise Accounting Software [Click Here] Accounting ERP Click Here Undo Privately, several industry representatives have met commerce department brass and suggested that India should agree to the demands from the Trump administration, but government is keen to ensure that it is not a one-sided deal. Officials also conveyed to exporters on Monday that the limited deal, if it works out, will cover only a limited set of products with more tranches likely in the coming months. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
27 minutes ago
- Mint
Timezone steps up India expansion with ₹100 crore plan, eyes 100 centres by 2026
Gift this article New Delhi: Timezone, one of the world's largest family entertainment centre (FEC) brands and owned by Australia-based TEEG (The Entertainment and Education Group), is scaling up its India operations. The company plans to continue investing over ₹ 100 crore annually as it targets 100 locations by 2026, up from 84 currently. It sees potential to expand across more than 80 cities in the country. New Delhi: Timezone, one of the world's largest family entertainment centre (FEC) brands and owned by Australia-based TEEG (The Entertainment and Education Group), is scaling up its India operations. The company plans to continue investing over ₹ 100 crore annually as it targets 100 locations by 2026, up from 84 currently. It sees potential to expand across more than 80 cities in the country. 'We've consistently opened 10 to 12 venues every year, and we plan to continue at that pace," Abbas Jabalpurwala, CEO of Timezone India, told Mint in an interview. 'We should close this calendar year at 92 and cross the 100-venue mark next year. What gives us confidence is that this expansion is largely funded through internal accruals—we've remained profitable throughout." Timezone has been in India for 14 years and, by its own estimates, has invested close to ₹ 800 crore in the country to date. The company typically spends ₹ 8-12 crore per centre, depending on the format. While Timezone does not disclose market-specific revenues, India is its second-largest market after Australia, in terms of both footfalls and revenue. India has emerged as one of TEEG's most important growth markets. The group, which also operates the Play 'N' Learn brand across the Asia-Pacific region, sees rising demand for high-quality social entertainment among Indian consumers. 'The Indian consumer is incredibly aware, aspirational, and eager for world-class social entertainment experiences," said Caroline Leong, group chief customer officer at TEEG, said in the same interview. 'This is no longer a metro-only market. Families, friends—even grandparents—are coming in together." TEEG is jointly owned by the LAI Group, led by the Steinberg family, and Quadrant Private Equity, which acquired a 50% stake in the Timezone business in 2017 to create the current structure. The group operates more than 300 centres across Asia-Pacific under brands such as Timezone, Zone Bowling, Kingpin and Play 'N' Learn. It has also attracted institutional debt funding, with Australian firm QIC acquiring a portion of its A$625 million debt facility. Beyond the metros Having built its early presence in top-tier malls across Mumbai, Bengaluru, Hyderabad and Delhi, Timezone is now expanding into smaller cities such as Anand, Rourkela, Siliguri, and Varanasi. 'We've identified 80 cities we want to be in. Currently, we're present in just 30. So, even if we only open one store per city, we have a solid five-year runway," said Jabalpurwala. The company's newer locations in tier 2 and 3 cities are meeting—or even exceeding—expectations in terms of revenue. 'Tier 2 and tier 3 customers are willing to pay for quality—they know what's available in Mumbai or Delhi because of social media. As long as you don't cut corners on the experience, they respond," he said. Also Read | Can a Dubai-based league take kabaddi to the Olympics? While the company does not share revenue figures, Jabalpurwala said the cost of building a centre typically ranges between ₹ 9,000 and ₹ 12,000 per sq. ft., with a targeted breakeven window of three years. 'ROI-wise, we aim for a three-year payback window, though most locations break even on cash flow within the first month," he noted. Bigger, better centres Timezone recently relaunched its first-ever location at Inorbit Mall in Mumbai's Malad as a flagship venue, spread over 23,000 sq. ft. and packed with group-friendly features—bowling alleys, a laser tag arena for 18 players, bumper cars, cricket mini-games, and a full-service café. While average store sizes range from 9,000 to 15,000 sq. ft., the brand is leaning into larger formats for key locations. This reflects a shift in consumer preferences toward immersive group experiences, particularly in the wake of the pandemic. 'Earlier, people came alone or in pairs. Now it's six, eight, even 10 people coming together. Games are designed for group play—bumper cars, laser tag, VR (virtual reality) experiences," said Leong. Dwell times have grown as a result. On average, customers now spend 60 to 80 minutes per visit, with families flocking in during weekends and holidays. Weekday traffic, too, has picked up, driven by college students and corporate groups, Leong added. Owning the experience Unlike some competitors, Timezone India is fully company-owned and operated, with no franchisees. 'Franchisees may not always uphold the brand spec or invest back in refreshing content, which is non-negotiable for us," said Jabalpurwala. Most leases are long-term—nine to 12 years—and several have already been renewed multiple times. The brand typically accounts for 3-5% of a mall's monthly footfall, and average spending per family ranges from ₹ 2,000 to ₹ 3,000 on weekends. Per-customer spending has also been growing steadily at 8–10% year-on-year, according to Jabalpurwala. What's next? TEEG is exploring the possibility of introducing Kingpin, its upscale bowling-bar format, to India. 'India is evolving fast, and we see space for all our formats eventually," Leong said, though she did not provide a timeline. To deepen customer engagement, Timezone is leaning on data and loyalty tools. Its Powercard and mobile app track detailed user behaviour and enable hyper-personalized offers. 'We have more than 2 million contactable users in India alone, and over 8 million globally. We know what they play, when they come, and what they like to eat," said Leong. While competition is intensifying from brands like Snow World, SMAAASH, and newer trampoline park chains, Timezone maintains a clear lead in the organized indoor FEC segment. It currently operates 84 centres in India, compared with fewer than 20 for SMAAASH and just two for Snow World. According to the company, it holds over 60% of the market share by venue count. Topics You May Be Interested In
Mint
28 minutes ago
- Mint
Tesla employee quits after 7 years over Elon Musk's behaviour, 'Nazi salute': 'Ashamed to tell people where I work'
Trae Cervantes, a former engineering technician at Tesla, revealed why he departed from the electric vehicle manufacturing giant in March 2025 after a seven-year tenure at the company's Gigafactory in Nevada. His decision to quit was not due to the demanding 12-hour shifts or the company's culture, but rather a growing moral conflict stemming from CEO Elon Musk's increasingly controversial public behaviour. Cervantes' tenure in the Electric Vehicle (EV) giant began in 2018 as a production associate. He was drawn to the company during a difficult period in his life, aiming to improve his life after personal struggles. "I was drawn to Tesla because I needed a way to improve my situation," he told Business Insider. 'I'd gone through a divorce, I got arrested for drinking and driving, and I was working two jobs to make ends meet.' During that time, one of Cervantes' best friends who was working in Tesla advised him to apply. 'When I got the job, I quit the two jobs and immediately got a better-paying role with more time off," he recalled. Cervantes quickly advanced through multiple roles during his tenure and praised Tesla for offering him career growth and better pay without a formal education. Despite this, a significant shift in his loyalty began to occur due to Elon Musk's increasingly controversial public actions. While there had always been a "cult of personality" around the Tesla CEO, Cervantes initially "believed in the mission". Even early controversies like Musk smoking weed on the Joe Rogan incident or the 'Thai diver incident' did not deter his commitment. The turning point came with Musk's deeper involvement in Twitter and politics, which Cervantes felt was "detracting from the company's mission." The "giveaway for prospective voters" struck Cervantes as "morally wrong," making him actively dig into Musk's history and the company's unfulfilled promises like full self-driving vehicles. The breaking point arrived with an incident in which Musk appeared to make a "Nazi salute", leading Cervantes to feel "ashamed to tell people where I work". Even though Cervantes chose to leave without a job lined up, he had an explanation: "I have to leave. I can't do this anymore. It's getting to a point where I feel like I'm compromising myself morally by walking through those doors every day." Despite the emotional difficulty of leaving a place that transformed his life, Cervantes asserted, "I didn't leave the place because of the company. I left because of the face of the company."
