S'pore firms raise $6.7b in equity capital markets

Figures tallied for 2018 to date down 30% from 2017, data shows

Singapore companies have raised US$4.9 billion (S$6.7 billion) in equity capital markets so far this year, a 30.1 per cent decline from 2017, according to data out yesterday.

A total of US$745.5 million was raised this quarter to date, a 15.4 per cent decrease from the preceding three months and 79.1 per cent below the same period last year.

Initial public offerings (IPOs) by Singapore companies in both domestic and foreign equity markets have raised US$689.8 million so far this year, down 83.9 per cent on the same period in 2017 and the lowest in terms of proceeds since 2015.

However, follow-on offerings from Singapore issuers raised US$3.5 billion, a 39.2 per cent increase from 2017, according to a preliminary review by Refinitiv, the former financial and risk business of Thomson Reuters.

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

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

Nine out of the top 10 deals were real estate investment trust (Reit) issuances, giving the real estate sector 77.4 per cent or US$3.8 billion raised in equity capital markets - an 8.2 per cent increase on 2017.

  • 84%

  • Year-on-year drop in IPOs by Singapore firms in both domestic and foreign equity markets, to US$689.8 million so far this year.

The media and entertainment sector was next on a 10.2 per cent market share, with industrials third at a 4.7 per cent market share.

Singapore-listed equity offerings, which include both IPOs and follow-on offerings listed on local exchanges, added up to US$4.9 billion from Jan 1 to Dec 11, a 16.2 per cent decline on 2017.

That said, follow-on offerings on Singapore 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.

Sasseur Reit's US$315.6 millionIPO has been the largest Singapore-issued listing this year.

A version of this article appeared in the print edition of The Straits Times on December 12, 2018, with the headline 'S'pore firms raise $6.7b in equity capital markets'. Print Edition | Subscribe