SINGAPORE (Sept 28): The Singapore Exchange (SGX) has emerged as Asean’s top initial public offering (IPO) market performer for the third quarter of 2017 with proceeds of US$1.7 billion ($2.3 billion).  

This was largely thanks to the listing of telecoms company NetLink NBN Trust, the largest IPO in Asia-Pacific for the quarter, according to the latest EY Global IPO Trends: Q3 2017 report.

Other exchanges in the region such as Malaysia’s Kuala Lumpur Stock Exchange (KLSE), Thailand’s Stock Exchange of Thailand (SET) and Philippines’ Philippine Stock Exchange (PSE) saw strong results over the quarter as well – raising US$876.9 million, US$624.2 million and US$114.8 million respectively.

Notably, five out of the world’s 10 most active stock exchanges by IPO volumes, and four by proceeds, were from the Asia Pacific region alone in the 2017 year to date.

This brings the number of IPOs in Asia Pacific over the first nine months of 2017 to 690 IPOs in total, up 72% y-o-y, with capital raised increasing 28% to US$53.9 billion.

YTD deals and proceeds in Asean were up y-o-y by 27% and 58% respectively with 70 deals and US$6.3 billion in proceeds.  

In a press release on Thursday, Max Loh, AY Asean and Singapore managing partner, Ernst & Young LLP, notes that Asia Pacific has remained the leader in global IPO activity, with companies coming to market standing to benefit from strong economic fundamentals and continued growth in the longer term.

“The SGX remains an appealing equity springboard for Southeast Asian companies that enjoy robust fundamentals and proven business models. We expect a growing number of listings by FinTech and technology-based businesses, supplementing a strong historical pipeline of companies from the property, consumer and industrial sectors,” says Loh.

“The doubly subscribed US$1.7 billion listing of Singaporean telecoms company NetLink NBN Trust in July – the largest IPO in Asia-Pacific in Q3 2017, underscores [SGX’s] attractiveness and capacity to achieve successful IPOs,” he adds.

Globally, IPO volume for the period from Jan to Sept 2017 has already exceeded the full-year totals for 2016, with 1,156 IPOs raising US$126.9 billion in capital to represent an increase of 59% by number of IPOs and 55% by proceeds compared with the same period last year.

Martin Steinbach, EY Global and EMEIA IPO Leader, projects that the final numbers for 2017 could fall between the range of 1,600 to 1,700 IPOs and US$190 billion to US$200 billion in capital raised, respectively – which could mark 2017 as the best year for global IPO performance since 2007.

“At the nine-month point of the year, the global IPO market has continued to build strong momentum. Given the strengthening IPO sentiment with relative low volatility and valuations at high levels, we expect a year-end rally in the fourth quarter, traditionally the busiest IPO quarter of the year,” comments Steinbach.