Singapore’s Nasdaq link draws interest, but threshold and liquidity may limit take-up

SINGAPORE – A Singapore initiative to boost the initial public offering (IPO) market with a fast-track route to a Nasdaq dual listing has garnered a warm response from potential issuers, though bankers caution that thin liquidity and a high valuation requirement could limit take-up.

The initiative, announced on Nov 19, allows companies to list simultaneously on the Singapore Exchange (SGX) and Nasdaq using a single prospectus in their application, cutting the cost and complexity of a second listing that firms pursue primarily to access capital from a broader investor base.

Described by Nasdaq as “the first of its kind”, the plan is set to go live by mid-2026. It follows tax rebates and other measures over the past year to woo mainly South-east Asian companies while also courting global issuers in an effort to catch up with regional rival Hong Kong.

Those measures are starting to have an impact, as IPOs in Singapore raised about US$2.15 billion (S$2.8 billion) in 2025, the most since 2017. Still, that compares with US$37.2 billion in Hong Kong’s best performance since 2021, according to LSEG data.

Having watched as Hong Kong experienced an artificial intelligence-fuelled IPO boom over the past two years, Singapore is banking on Nasdaq’s cachet to help it regain ground and cement its role as a regional hub for growth companies seeking global capital.

Welcoming the tie-up was Singapore-based Carro, backed by Singapore’s investment company Temasek and Japanese tech investor SoftBank Group. The car marketplace is aiming for a US IPO with a valuation at over US$3 billion, Reuters has reported.

Co-founder and chief executive Aaron Tan told Reuters: “Our hesitation for a dual listing has always been complexity and the need to deal with two regulators during an IPO.”

Malaysia-based used-car trading platform Carsome described the initiative as “constructive”.

Co-founder and CEO Eric Cheng said: “A structure that streamlines cross-border listings will naturally prompt companies to reassess the options available to them.”

Singapore-based Funding Societies, a regional digital financing platform for small businesses, said the tie-up could offer South-east Asian start-ups a means of listing in the US, which might otherwise be out of reach.

Mr Piers Ingram, the CEO of Singapore-based Hummingbird Bioscience, told Reuters that the initiative is “a bridge”, opening the way to science-focused investors in the US and Asia.

All four companies declined to elaborate on any IPO plans.

High threshold, low liquidity

Branded the Global Listing Board, the initiative allows firms with a market value of at least $2 billion to prepare a single prospectus for SGX and Nasdaq with a coordinated review replacing two separate processes.

By way of comparison, a secondary listing on Hong Kong’s main board requires a valuation of at least HK$3 billion (S$495 million), along with sundry other conditions.

The higher threshold reflects the quality of the companies that SGX and Nasdaq are targeting, but also limits prospective applicants to established growth firms, bankers said.

About eight South-east Asian tech firms meet the threshold, with another two to three potentially close to achieving that, said Mr Roshan Raj, partner at RedSeer Strategy Consultants.

The threshold is “sizeable enough to support meaningful trading volumes and liquidity across both markets”, said Mr Pol de Win, head of global sales and origination at SGX.

Nasdaq vice-chairman Bob McCooey said the Global Listing Board “will create meaningful value for the region and facilitate a global marketplace”.

While South-east Asian applicants would benefit from greater regional recognition in Singapore, the city-state will still have to persuade them to list in a market long characterised by thin liquidity, bankers said.

Average daily turnover was about $1.39 billion in November compared with $29 billion in Hong Kong, the latest figures showed.

Singapore has introduced measures to boost liquidity, such as establishing an almost $4 billion fund to support investment managers focusing on small- and mid-cap equities.

The dual listing initiative is a positive step, but its “broader impact will depend on early deal flow, liquidity support and whether the Singapore regulatory authorities subsequently relax thresholds”, said Ms Tay Hwee Ling, capital markets services leader at Deloitte Southeast Asia.

A Monetary Authority of Singapore spokesperson said the authority is working with SGX on a streamlined regulatory framework for those seeking to list on the Global Listing Board, while SGX’s Mr de Win noted that success and transformation require industry-wide effort.

“SGX is working closely with the Singapore government agencies and market participants on a comprehensive approach that further strengthens supply, stimulates demand and builds a pro-business ecosystem with robust governance,” he said. REUTERS