SINGAPORE (Nov 24): There were 16 new listings in 2016 and 13 in 2015. And, as it is, the 15 IPOs that have already taken place this year raised more money than IPOs for both 2016 and 2015 combined.
The new listings this year also drew stronger subscription rates and garnered higher valuations, according to a study by Deloitte.
As at Nov 15, some $3.7 billion had been raised via IPOs. Only $2.3 billion was raised during the whole of 2016, and only $513 million in 2015. At their IPO prices, the 15 companies that listed by Nov 15 this year were valued at $6.56 billion.
A big chunk of this was due to NetLink Trust, a unit of Singtel that hit the market in July. The IPO of the trust raised $2.45 billion. Singtel took in proceeds of some $2.3 billion from the divestment of a 75% stake in the trust.
The second-best performer is Catalist-listed concert organiser UnUsUaL, which did an IPO in April at 20 cents a share. The stock has risen 275% since then and is now trading at 75 cents. The company focuses on bringing Western artists to China’s smaller cities, where this sort of live entertainment is scarce and local governments are hungry for tourism dollars.
Since Nov 15, there have been at least four more IPOs. Two of them are F&B businesses listing on Catalist: RE&S Holdings and No Signboard Holdings. Another is MindChamps PreSchool, a company that operates early education centres, which is listing on the Mainboard.
Then, there is Cromwell European REIT (CEREIT), which owns a portfolio of offices and industrial properties in countries such as Italy, France, Denmark, the Netherlands and Germany. CEREIT attempted to list two months ago with a portfolio that included assets in Poland. If its listing goes through, it will be the second REIT with foreign assets to hit the market this month, after Keppel-KBS US REIT, which holds office properties in the US.
This surge in new listings is set to enliven the local market. Why are more companies listing, and what should investors do?
Find out from issue 807 of The Edge Singapore (week of Nov 27), available at newsstands this week.