SINGAPORE (June 22): Singapore-domiciled companies tapping the equity capital markets (ECM) have booked a total of US$1 billion ($1.4 billion) this year, declining 62.3% compared to US$2.8 billion in 1H16, according to the latest Thomson Reuters data.

This comes despite an increase in number of ECM issuance to 23 compared to 22 in the previous year, says the mass media and information firm in its 1H17 preliminary review on Singapore equity capital markets.   

Follow-on offerings accounted for the majority (76.8%) of the equity capital raisings with 15 issues totalling to US$806.1 million in proceeds, up 102.7% from the comparative period last year which saw US$397.7 million across 11 issues in the comparative period last year.

A total of eight initial public offerings (IPOs) were issued from Singapore companies in both domestic and overseas stock markets in the year to date, raising US$243 million in proceeds, which represents an 89.8% decline from US$2.4 billion a year ago.

Local recruitment firm HRnetGroup held the biggest Singaporean IPO for the first half of 2017, raising US$126.4 million in proceeds after launching its IPO on the Mainboard of the Singapore Exchange (SGX).

(See also: HRnetGroup launches $174.1 mil IPO at 90 cents per share)

Dasin Retail Trust and Kimly followed at second and third place with proceeds of US$84.4 million and US$30.7 million, respectively.

Notably, Thomson Reuters believes total IPO issuance from Singaporean companies could potentially improve this year with the anticipated IPO of SingTel subsidiary NetLink Trust, which is expected to raise as much as US$2 billion.  

DBS Group presently leads the ranking for ECM underwriting in the city state with US$308.1 million in related deals, as well as with 29.4% of captured market share. BNP Paribas took second place with 15.1% market share, followed by United Overseas Bank (UOB) and UBS with respective market shares of 10.9% and 10.1%.

Sector-wise, majority of the nation’s ECM activity was led by the real estate sector, with 60.4% market share and generated proceeds worth US$633.2 million, down 57.7% from over a year ago compared to US$1.5 billion in 1H16.

Consumer products & services and healthcare came in as the second and third industries following real estate, with 13% and 10.1% market share, respectively.

In line with the lower ECM proceeds, underwriting fees for equity deals issued by Singapore-owned companies totalled US$23.5 million, down 18.1% compared to 1H16.

DBS Group leads in terms of fee rankings for Singapore equity issuance, with US$3.1 million in estimated fee revenue that account for 13.1% of the wallet share so far this year.