IPO and placements
Other than M&A activities, other financing activities have also started to gain some traction going well into next year based on a healthy pipeline of IPOs, additional share placements and rights issue exercises. From the period 1st October 2014 to 1st October 2015, the Singapore Stock Exchange’s (“SGX”) Main board and Catalist board have both managed to list 17 IPOs raising total proceeds of approximately S$762.6 million. However, many newly listed companies prefer to list on the Catalist board. Surprisingly, additional share placements have accounted for S$1.0 billion while rights issues have raised a total of 2.8 billion in the past 12 months. Contrary to popular beliefs, Singapore market is truly buoyant and forging forward.
“We continue to have a healthy pipeline of companies seeking to list on SGX, with the majority of our new mandates coming from overseas companies. Catalist-listed companies tend to benefit from more participation from institutions and high net worth individuals, improved liquidity with higher turnover velocity, wider access to capital via placements, rights issues and medium term note (MTN) programs. Given the challenging and volatile market conditions, it is critical that listing aspirants work closely with their sponsors and investor relations firms to clearly communicate their business model and future plans to shareholders and external stakeholders,” commented Mark Liew, Managing Director of Prime Partners Corporate Finance.
Financial PR Team SG