Firms keen to list on SGX
SINGAPORE: Interest from Singapore firms to list on the local bourse via initial public offerings (IPOs) and reverse takeovers (RTOs) has been returning ahead of a US$5bil capital injection that is expected to help revive the local stock market.
'We are currently working on several listings, including the Yangzijiang Maritime spin-off and the proposed RTO involving Sincap and Skylink Apac, both expected to list on the Singapore Exchange (SGX) within the year,' Ong Hwee Li, chief executive of corporate finance firm SAC Capital, told The Straits Times.
This follows April announcements by SGX-listed Yangzijiang Financial to spin off its maritime investments into a separately listed company, and by Sincap Group to acquire vehicle leasing firm Skylink for S$42.3mil via an RTO, paving the way for Skylink to become publicly listed.
SAC Capital is also advising 'two to three' local IPO aspirants in sectors including events management, real estate management and natural resources. These firms expect to list on SGX in 2026.
'We are receiving more listing inquiries, about one to two per month, from companies in other industries like construction, food and beverage, technology, and financing sectors, highlighting renewed interest in IPOs,' Ong said.
He added that SAC Capital's IPO pipeline is now full, with much stronger investor interest in book building compared with 2024.
Book building is a stage in the IPO process where investors bid for the number of shares they want at certain price points, which helps corporate advisers gauge demand for a company's shares and how to price them before they are listed on the stock exchange.
These developments are being fuelled by a central bank-led programme to allocate US$5bil in seed capital to Singapore-based funds for investing in local stocks which are not on the benchmark Straits Times Index (STI).
The STI tracks the performance of the top 30 largest and most liquid companies listed on SGX.
Announced in February as part of a string of measures to revive the Singapore stock market, the programme has received positive interest from global fund managers. Suitable investment strategies will be shortlisted by end-September, the Monetary Authority of Singapore has said.
Analysts reckon the funds will likely be deployed before the end of 2025.
Listing interest has gained momentum as a result.
On June 6, Bloomberg reported that Hong Kong-based Link-REIT is considering listing a real estate investment trust (REIT) in Singapore that would include some of its properties outside of China and Hong Kong, while Japan's Nippon Telegraph and Telephone in its earnings release in May said it plans to list its data centre REIT on the SGX.
In May, Reuters reported that at least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months.
The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group.
In April, LHN Group announced plans to take its co-living business Coliwoo Group public on the SGX.
The real estate management services group, dual-listed in Singapore and Hong Kong, said it has submitted applications in both places for the proposed spin-off and separate listing of the shares of Coliwoo on the mainboard of SGX.
In January, Centurion Corp said in a bourse filing that it is exploring the establishment of a REIT involving some of its worker and student accommodation assets that it plans to list on the SGX main board.
US data security firm AvePoint, which trades on Nasdaq, in January also filed for a secondary listing in Singapore.
If they take place, these listings will give the SGX a much-needed boost after the bourse saw just four IPOs in 2024, a record low.
The bourse has hosted just one notable IPO in 2025, that of automotive group Vin's Holdings, which is now trading at 29 US cents, close to its IPO price of 30 US cents.
Key to their success is how the shares are traded post-listing, Ong said, noting that many IPOs, particularly on Catalist, are too small and have controlled floats, where a company limits the number of shares available for public trading.
While a limited float may initially create strong demand and price momentum, it also means there is little market depth to absorb selling pressure once investor sentiment shifts.
Ong noted that SAC Capital encourages retail participation in the IPOs it manages by offering automated teller machine (ATM) tranches, which allows retail investors to apply for shares directly through their bank ATMs.
He added that retail investors who receive shares through the ATM tranche tend to trade more actively, contributing to a more diversified and engaged shareholder base post-listing. — The Straits Times/ANN
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