Singapore IPO market to pick up later this year: PwC

An office worker walks past a logo of the Singapore Stock Exchange (SGX) outside its premises in the financial district of Singapore in this file photo taken on April 23, 2014.-- PHOTO: REUTERS
An office worker walks past a logo of the Singapore Stock Exchange (SGX) outside its premises in the financial district of Singapore in this file photo taken on April 23, 2014.-- PHOTO: REUTERS

SINGAPORE - The total amount of money raised via public floats worldwide hit a record high in the first half this year, but that did not spill over into Singapore.

The Singapore Exchange (SGX) saw few initial public offerings (IPOs) in the first six months, which included two real estate investment trusts (reits) and two marine and energy firms, consultancy PricewaterhouseCoopers (PwC) said in a report on Wednesday.

It added that more firms such as Frasers Hospitality Trust, Accordia Golf Trust and the First Sponsor Group are expected to debut in Singapore in the second half.

About US$125.4 billion was raised via IPOs in total over the six months to June 30 this year, which was the largest amount since the second half of 2010, PwC said.

In Singapore, the two reit listings in the first half raised $0.7 billion combined and the two marine and energy listings together raised $0.4 billion.

The SGX's "traditional strength continues to be in reits and mineral, oil and gas listings", PwC said.

Mr Tham Tuck Seng, head of capital markets at PwC Singapore, said that the SGX should continue to see "high levels" of interest from companies looking to raise capital since it was backed by "strong governance and a progressive and transparent regulatory regime".

He told The Straits Times on Wednesday that several firms likely delayed their IPOs from the first half to the second half because they wanted to get better valuations.

The record global IPO performance in the first six months this year was largely driven by private equity funds in Europe listing the companies in their portfolios, he noted.

Private equity fund activity in Singapore is picking up and the SGX could see the listings of some private equity fund-backed companies in one or two years' time, Mr Tham added.

These listings are likely to be of companies that have a regional focus, he said.

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