SGX optimistic about listings pipeline; posts 20.7% rise in first-half profit

SINGAPORE - The Singapore Exchange (SGX) is seeing an improvement in the pipeline of companies heading for an initial public offering (IPO), and hopes that its listing numbers in 2025 will exceed 2024’s.

SGX chief executive Loh Boon Chye said he cannot yet provide an update on the r

eview group set up by the Monetary Authority of Singapore

to revitalise the Singapore stock market, but that the bourse operator is seeing improved momentum in companies wanting to list here. The review group is expected to issue a report in August.

Said Mr Loh: “I think it’s important that Singapore’s stock market grows and sustains its trajectory. Structural issues, policy issues, have to be obviously addressed, including by the SGX, all participants in the ecosystem, policymakers and regulators.

“I think the ecosystem is very heartened that the review group is taking a very holistic view, diving into the issue and looking to address demand, supply and on the regulatory front.”

He made the remarks at SGX’s financial results briefing on Feb 6. The company reported a 20.7 per cent year-on-year rise in net profit to $340 million for the first half year ended December 2024. 

At the briefing, SGX head of global sales and origination Pol de Win said the exchange has seen issuers becoming more active.

“Equity levels are generally quite high. The rates outlook is stable, and in some cases (the rates) have been declining. So investor confidence is clearly coming back,” he noted.

“At the same time, private capital providers have an increasing need for recirculation of the capital. And so we really expect that the IPO market generally in the world is coming back and we will benefit from that as well.”

He added that companies that want to list are broad-based across sectors, with more firms in the new economy – referring to new, high-growth industries that are on the cutting edge of technology. Companies pursuing listings also come from sectors like consumer segments and the healthcare space.

Mr Loh also said at the briefing: “While there could be some moderation of macro tailwinds in the near term, we remain optimistic about our medium-term outlook. Our focus on broadening our customer base globally and across segments, as well as expanding and driving greater adoption of our products and solutions, sets the stage for market leadership.”

He added that SGX is optimistic about achieving its revenue target of 6 per cent to 8 per cent growth in the medium term, excluding treasury income.

“We started the fiscal year strong with our highest half-year revenue and net profit since listing,” he said. “The breadth and depth of our multi-asset offering and ecosystem, coupled with an expanded product suite and customer base, positioned us well to capture market opportunities.”

SGX’s board on Feb 6 declared an interim quarterly dividend of nine cents per share, payable on Feb 21, which brings total dividends in the first half of the 2025 financial year to 18 cents per share.

Cash equities and derivatives equities led SGX’s good performance, said Mr Loh. This was followed by currencies and commodities.

He added that SGX has seen rising global demand for its derivatives suite, increased trading across products and higher activity during US and European hours.

“Trading in our cash equities market grew alongside the introduction of more investment options for investors,” he noted.

SGX’s first-half performance was strong across its various segments.

Net revenue from cash equities increased 22.3 per cent to $192.6 million and accounted for 29.8 per cent of total net revenue. 

Net revenue from derivatives equities rose 21.6 per cent, while that of currencies and commodities increased 13.1 per cent.

Fixed income net revenue also expanded, by 22.8 per cent. There were 395 bond listings raising $145.6 billion, compared with 489 bond listings raising $131.7 billion a year earlier. 

However, listing revenue was down 12.6 per cent to $12.7 million. SGX recorded five new equity listings, which raised $19.7 million, and secondary equity funds raised reached $3.1 billion.

For the half year, SGX’s securities daily average traded value rose 31.2 per cent to $1.3 billion, while the total securities traded value increased 34.4 per cent to $162.8 billion.

SGX shares rose 28 cents, or 2.25 per cent, to $12.71 on Feb 6.