Singapore-listed equity offerings up 6.1% year-to-date, strongest since 2014

Singapore firms tapping the equity capital markets have raised US$3.8 billion so far in 2018, a 10.4 per cent increase in proceeds compared with the first nine months of 2017.
Singapore firms tapping the equity capital markets have raised US$3.8 billion so far in 2018, a 10.4 per cent increase in proceeds compared with the first nine months of 2017.PHOTO: ST FILE

SINGAPORE - Singapore-listed equity offerings totalled US$3.8 billion (S$5.22 billion) so far this year, a 6.1 per cent increase in proceeds compared with the first nine months of 2017 - the strongest first nine-month period since 2014.

This was driven by follow-on offerings in Singapore stock exchanges that have raised US$3.3 billion in proceeds so far this year, up 130.3 per cent from a year ago, according to Thomson Reuters data.

However, initial public offering (IPO) listings raised US$518.1 million, down 75.9 per cent from the first nine months of 2017. Real estate accounted for 67 per cent of the market share, followed by 26.4 per cent from Media & Entertainment.

Singapore companies tapping the equity capital markets (ECM) have raised US$3.8 billion so far this year, a 10.4 per cent increase in proceeds compared to the first nine months of 2017. ECM issuance has also gone up 33.3 per cent from a year ago.

But Singapore's ECM activity declined in the third quarter of 2018 as proceeds reached US$533.4 million, a 77.2 per cent sequential decrease from the US$2.34 billion raised in the second quarter, and down 77 per cent in proceeds compared with the US$2.32 billion raised in the third quarter of 2017.

IPOs by Singaporean companies in domestic and overseas stock markets raised US$667.2 million  in the year to date, down 68.3 per cent in proceeds compared with last year despite a 23.5 per cent increase in the number of IPOs.

Follow-on offerings from Singaporean issuers raised US$2.4 billion in proceeds, a 78.9 per cent jump from the comparative period last year as the number of issuances picked up 22.7 per cent. Follow-on offerings have accounted for 63 per cent of Singapore's ECM so far this year, while IPOs captured a 17.6 per cent market share in terms of proceeds. Convertible offerings registered a 19.4 per cent market share.

Singapore-based Sea Ltd raised US$500 million from a five-year convertible bond in June, which is the biggest Singapore equity offering this year. This is followed by Frasers Logistics & Industrial Trust's US$355.9 million preferential offering in June and Ascendas Reit's US$328 million follow-on offering in September.

Sasseur Reit's US$315.6 million IPO listed on Singapore Stock Exchange  is the largest Singaporean-issued IPO to date.

DBS Group leads the ranking for Singapore's ECM underwriting with US$931.4 million in related proceeds, capturing 24.5 per cent of the market share. Goldman Sachs follows in second place with a 16.1 per cent market share and Citi with 12.5 per cent market share at the third spot.

Real estate accounted for majority of the nation's ECM activity with a 73.4 per cent market share worth US$2.8 billion in proceeds, a 135.2 per cent jump from over a year ago. Eight out of the top 10 deals this year were Reits (real estate investment trust) issuance, led by Frasers Logistics & Industrial Trust and Ascendas Reit's follow-on offerings, and Sasseur Reit's US$315.6 million IPO.

Media & Entertainment followed behind in second place with a 13.2 per cent market share and Industrials in third place with a 4.3 per cent market share.