Singapore firms raise $6.7b in equity capital markets to date in 2018; 30.1% fall from 2017: Refinitiv

With nine out of the top 10 deals this year being Reit issuances, the real estate sector contributed to 77.4 per cent of Singapore's equity capital market activity, with US$3.8 billion in proceeds.
With nine out of the top 10 deals this year being Reit issuances, the real estate sector contributed to 77.4 per cent of Singapore's equity capital market activity, with US$3.8 billion in proceeds. PHOTO: ST FILE

SINGAPORE - Singapore companies have raised US$4.9 billion ($6.7 billion) in equity capital markets (ECMs) so far this year, a 30.1 per cent decline in proceeds compared to 2017, according to findings in Refinitiv's Singapore ECM Q4 2018 preliminary review.

For the fourth quarter up to Dec 11, ECM activity in Singapore amounted to US$745.5 million, a 15.4 per cent decrease from the preceding quarter and down 79.1 per cent in proceeds compared to the year-ago period.

For the year up to Dec 11, initial public offerings (IPO) by Singapore companies in both domestic and foreign equity markets raised US$689.8 million, down 83.9 per cent compared to last year. This is the lowest annual period in terms of proceeds since 2015.

However, follow-on offerings from Singapore issuers raised US$3.5 billion in proceeds, a 39.2 per cent increase from 2017.

In all, follow-on offerings accounted for 70.8 per cent of total proceeds raised in Singapore ECMs for the year up to Dec 11, while IPOs captured 14.1 per cent market share and convertible offerings registered 15.1 per cent market share.

A five-year convertible bond issue that raised US$500 million for Singapore-based Sea Limited in June is the biggest Singapore equity offering on the year.

Refinitiv said: "This is followed by OUE Commercial Reit's US$426.4 million ($587.5 million) rights offering in October to finance a planned acquisition."

Meanwhile, Sasseur Reit's US$315.6 million ($415.6 million) Singapore Exchange-listed IPO is the largest Singapore-issued IPO during the year.

With nine out of the top 10 deals this year being Reit issuances, the real estate sector contributed most to Singapore ECM activity on the year with a 77.4 per cent or US$3.8 billion in proceeds. This represents an 8.2 per cent increase from 2017.

In second spot was the media and entertainment sector, which garnered a 10.2 per cent market share while industrials was third with a 4.7 per cent market share.

Singapore-listed equity offerings, which include both IPOs and follow-on offerings listed in Singapore's stock exchanges, added up to US$4.9 billion for the year up to Dec 11, a 16.2 per cent decline in proceeds compared to 2017.

That said, follow-on offerings on Singapore stock exchanges raised US$4.3 billion in proceeds, up 69.3 per cent from a year ago.

However, IPO listings raised US$535.5 million, down 83.5 per cent from 2017. In all, real estate accounted for 72.4 per cent of the market share, followed by 20.5 per cent from media and entertainment, Refinitiv said.

The former financial and risk business of Thomson Reuters is now named Refinitiv, following the completion of the sale of the business to Blackstone group in October.