THE market for new listings is starting to stir again in the second half of the year, after a dismal first half which saw only three listings.
Taking heart from the spectacular rebound in equity markets globally, initial public offering (IPO) aspirants - companies wanting to issue common stock to the public for the first time to raise capital - are once again turning to the capital market to raise funds.
A total of seven IPOs have been launched since end June - more than double that of the first half year.
Lacklustre stock market conditions early this year had hit the market for new listings, as prospective issuers put their listing plans on the back burner.
Of the 10 IPOs so far this year, seven are trading above their IPO price, with only three - Japan Foods, Westminster and Latitude - below water.
Two recent debutantes stood out: PEC shares surged 80 per cent above its offer price of 40 cents on its trading debut, while Mary Chia shares were up 47.8 per cent on its first day of trade.
'The IPO market will continue to be very robust, the reason being there is a lot of liquidity wanting to invest in Asia,' said Mr Philip Lee, JPMorgan's chief executive and head of investment banking in South-east Asia. The Singapore Exchange (SGX), along with rival exchanges like Hong Kong, 'falls in this category and will be a beneficiary of this'.
Dr Ernest Kan, head of Deloitte's Global IFRS & Offerings Services Group, said: 'There are some good signs in manufacturing activity, and the rebound in the stock market in recent months is also a positive trend.
'There are definitely more inquiries compared to six months ago. Next year will definitely be a better year for IPOs,' he added.
SGX said last month it is optimistic that there will be more listings. 'Providing current market conditions prevail, we expect increased interest in new listings,' CEO Hsieh Fu Hua said in a statement.
