A surge in new listings such as MindChamps PreSchool, RE&S Holdings, No Signboard Holdings and Cromwell European REIT is set to enliven the local market. Why are more companies listing? What should investors do?
(Nov 27): If it feels like the IPO market is heating up, you are not imagining things. In the first 10½ months of this year, there were 15 IPOs in Singapore. By year-end, that number should reach at least 19. 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.
“The investing public has a bigger appetite. The mom-and-pop investors, and even institutional investors, are starting to look beyond yield,” says Tay Hwee Ling, Deloitte Singapore’s audit and assurance partner, at a briefing on Nov 23. In the years following the global financial crisis, major central banks pursued aggressively loose monetary policies, which drove interest rates down and provided some support for stock prices. However, capital spending activity in the corporate sector was subdued in the face of excess capacity and general uncertainty.