SINGAPORE- Singapore’s move to launch new funds to support startups will help companies seeking IPOs, though it could take years before Singapore Exchange might become a center 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. – Reuters
