Singapore IPO activity this year poised to surpass 2016 levels

Real Estate Industrial Trusts (REITs) and business trusts accounted for 33 percent of Singapore's IPO proceeds.

MTI, STB seek feedback on amendments for travel agents law
The Singapore Merlion is seen in front of the city centre, in Singapore. Reuters

There was quite a number of successful Initial Public Offerings (IPO) in Singapore for the first half of the year, and this could spell a stellar overall IPO activity for 2017. According to the latest figures by PwC Singapore, IPOs for 1H17 raised US$329m.

This was on the back of two professional services IPOs, HRnetGroup and Shopper360, which have raised a total of US$134m, far ahead of the US$26m raised last year. The sector accounted for 41 percent in the overall IPO fund raised in 1H17.

Real Estate Industrial Trusts (REITs) and business trusts accounted for 33 percent of Singapore's IPO proceeds. The planned listing of Singtel's NetLink Trust of up to US$1.6b would likely bring the sector up and build traction for the rest of 2017.

PwC Singapore Capital Markets Leader Tham Tuck Seng noted that hotels, restaurants, and leisure IPO take 9 percent of the IPO fun raised in the said period. Eight percent were from real estate management and development sector. The remaining seven percent were shared by media, construction and engineering, and healthcare sectors.

"Singapore's H1 2017 numbers suggest that, apart from REITs and business trusts, niche sectors in the consumer space and professional services will be the next big growth opportunity for the local exchange. As SGX bolsters efforts in supporting technology start-ups, we can also expect to see more issuances from technology-driven activities," he said in a press statement.

Meanwhile, follow-on performance in Singapore remained dominated by REITs and business trusts.

Looking ahead, Tham said consumer and professional services will continue the uptrend with Singapore's position as one of the main business and financial services centres in the region. He also noted that Singapore Exchange is a choice listing destination for Asian businesses and a springboard for international firms to access the wider Asian region.

"With Singapore's pro-business environment and strong fundamentals – such as transparent regulatory regime, international exchange, and relatively quick time to market – Singapore remains a premier location for capital fundraising," he said.