Southeast Asia IPO market 01 Thailand’s IPO market in 2019 ... · In spite of changing market...
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Southeast Asia IPO market Southeast Asia bourses stay resilient against economic headwinds in 2019 with healthy levels of IPO activity 2019 Report
Transcript of Southeast Asia IPO market 01 Thailand’s IPO market in 2019 ... · In spite of changing market...
Southeast Asia IPO market Southeast Asia bourses stay resilient against economic headwinds in 2019 with healthy levels of IPO activity2019 Report
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Southeast Asia IPO market 01
Thailand’s IPO market in 2019 06
Singapore’s IPO market in 2019 09
Contact us 16
01
Southeast Asia IPO market
Southeast Asia performanceCapital markets across Southeast Asia achieved market capitalisation of US$25.2 billion,
having produced 161 initial public offerings (IPOs) and raising US$7.3 billion of funds in 2019.
Southeast Asia IPO market
Amount raised, market capitalisation and number of IPOs (2016-2019)
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
20
-
40
60
80
100
120
140
160
180
200
Amou
nt r
aise
d/IP
O M
arke
t Cap
(US$
mill
ion)
Num
ber
of IP
Os
113
178
152 161
5,479
9,921 9,538 7,349
18,631
33,243
46,070
25,163
No. of IPOs
2016
113
5,479
18,631
2017
178
9,921
33,243
2018
152
9,539
46,070
2019
161
7,349
25,163
Total
604
32,288
123,107
Amt Raised
Market Cap
Although IPO market capitalisation in Southeast Asia decreased by 45% from 2018’s US$46.1 billion to 2019’s US$25.2 billion, the total fund raised decreased by only 23% from
US$9.5 billion to US$7.3 billion.
02
Southeast Asia IPO market
20162017
20182019
Total
Indonesia
9221,024
1,132
Malaysia
2771,716
186
Philippines
921473
153
Singapore
1,6623,492
551
Thailand
1,5022,912
2,850
Vietnam
195304
4,667
Total
5,4799,921
9,5391,052 459 407 2,263 2,996 172 7,349
4,130 2,638 1,954 7,968 10,260 5,338 32,288
2016
2017
2018
2019
Indonesia
Number of IPOs in Southeast Asia (2016-2019)
16
37
57
Malaysia
12
13
23
Philippines
4
4
1
Singapore
16
20
15
Thailand
27
46
23
Vietnam
38
58
33
Total
113
178
15255 30 4 11 34 27 161
1,052
459 407
2,263
2,996
172
1,000
2,000
3,000
4,000
5,000
Amount raised by country (2016-2019)
Amou
nt r
aise
d (U
S$ m
illio
n)
2016 2017 2018 2019
1,000
3,000
5,000
7,000
9,000
11,000
13,000
15,000
IPO
Mar
ket C
ap (U
S$ m
illio
n)
2016 2017 2018 2019
31,103
IPO Market by Country
Indonesia
4,348
3,249
5,998
5,071
Malaysia
942
3,938
683
1,955
Philippines
3,911
2,470
763
1,337
Singapore
3,229
6,219
2,168
3,176
Thailand
4,497
13,537
5,355
12,685
Vietnam
1,704
3,830
31,103
939
Total
18,631
33,243
46,070
25,163
2016
2017
2018
2019
20162017
20182019
Total
Indonesia
9221,024
1,132
Malaysia
2771,716
186
Philippines
921473
153
Singapore
1,6623,492
551
Thailand
1,5022,912
2,850
Vietnam
195304
4,667
Total
5,4799,921
9,5391,052 459 407 2,263 2,996 172 7,349
4,130 2,638 1,954 7,968 10,260 5,338 32,288
2016
2017
2018
2019
Indonesia
Number of IPOs in Southeast Asia (2016-2019)
16
37
57
Malaysia
12
13
23
Philippines
4
4
1
Singapore
16
20
15
Thailand
27
46
23
Vietnam
38
58
33
Total
113
178
15255 30 4 11 34 27 161
1,052
459 407
2,263
2,996
172
1,000
2,000
3,000
4,000
5,000
Amount raised by country (2016-2019)
Amou
nt r
aise
d (U
S$ m
illio
n)
2016 2017 2018 2019
1,000
3,000
5,000
7,000
9,000
11,000
13,000
15,000
IPO
Mar
ket C
ap (U
S$ m
illio
n)
2016 2017 2018 2019
31,103
IPO Market by Country
Indonesia
4,348
3,249
5,998
5,071
Malaysia
942
3,938
683
1,955
Philippines
3,911
2,470
763
1,337
Singapore
3,229
6,219
2,168
3,176
Thailand
4,497
13,537
5,355
12,685
Vietnam
1,704
3,830
31,103
939
Total
18,631
33,243
46,070
25,163
2016
2017
2018
2019
Thailand produced the highest IPO market capitalisation of US$12.7 billion in 2019, accounting
for 50% of the total IPO market capitalisation for the region in 2019.
IPO Market by Country
03
Southeast Asia IPO market
Thailand emerged top performer in Southeast Asia with largest funds raised in 2019
This performance was led by Thailand, followed by Singapore, which respectively accounted for 41% and 31% of total funds raised in 2019.
ThailandThailand IPO capital market raised a total of US$3.0 billion in 2019, placing first amongst all Southeast Asian countries. With a stable and positive economic environment suitable for initial public offerings (IPOs), companies in Thailand want to go public to raise funds for expansions and restructuring. Furthermore, this environment has also strengthened the Thai real estate sector which contributed to 70% of the capital funds raised this year. Consistent performance of the Stock Exchange of Thailand has also attracted the interest of foreign investors, with 40% of investors in the Thai capital market being foreign investors in 2019.
SingaporeSingapore came in second with US$2.3 billion funds raised for 2019. During the year, Real Estate Investment Trusts (REITs) and Property Trusts listings dominated the Singapore Exchange (SGX) with four major listings which accounted for 98% of all funds raised. There is an increasing trend of REITs and Property Trusts with foreign assets seeking to list on SGX. As at the end of 2019, REITS and Property Trusts with portfolios comprising purely of foreign assets took up 38%, while those with a mix of Singapore-based and foreign assets made up 48% of all REITs and Property Trusts listed on SGX to date.
IndonesiaIndonesia was the third best performer with US$1.1 billion worth of funds raised from a total of 55 IPOs in 2019, the highest number of completed IPO deals in the region. The country’s consistent growth rate reflects in its IPO market with funds raised from IPOs each year being fairly consistent. The main driver of the IPO market in Indonesia comes from consumer business enterprises. Since 2017, at least 50% of the funds raised from IPO coming from the consumer business industry. In particular, the consumer business industry was the main contributor to funds raised in IPOs in Indonesia, with the sector raising US$503 million in 36 IPO deals.
VietnamVietnam raised US$172 million worth of funds from a total of 27 IPOs in 2019. The Vietnam stock markets enjoyed tremendous success in 2018 achieving top performer in Southeast Asia for the year with US$4.7 billion funds raised that is mainly attributed to the privatisation of state-owned enterprises (SOEs). In 2019 the government slowed down equitisation of its SOEs which led to the significantly lower funds raised for the year due to factors such as political uncertainties, lack of corporate transparency as well as poor post-IPO performance. However, in the third quarter of 2019, the government issued Decision 26 approving a list of 93 SOEs to be equitised by end of 2020. As such, the Vietnam stock markets will likely see an improvement in performance in the coming year.
04
Southeast Asia IPO market
The top three blockbuster listings in Southeast Asia for 2019 came from Thailand and Singapore:
Top 3 IPOs in Southeast Asia in 2019
S/N Country of listing
Company name Date of listing IPO market cap (US$’mil)
Amount raised (US$’mil)
Industry
Thailand Asset World Corp Public Company Limited
10 October 2019 6,151 1,382 Real Estate
Singapore Prime US REIT 19 July 2019 813 612 Real Estate
Singapore Eagle Hospitality Trust 24 May 2019 677 566 Real Estate
Asset World Corp Public Company Limited is the hospitality and property firm of Thai billionaire Charoen Sirivadhanabhakd. It raised US$1.4 billion making it the largest listing of an individual company on the Stock Exchange of Thailand. Foreign investors took up 53% of share sales, with Singapore’s GIC purchasing US$300 million worth of shares.
Prime US REIT is the largest IPO on the Singapore Exchange year-to-date raising US$612 million. The portfolio consists of 11 high-quality, Class A and freehold office properties which are located in nine key office markets across the US.
Eagle Hospitality Trust raised US$566 million is the first US hospitality pure-play REIT. The portfolio consists of 41 upper midscale to upscale hotels located in nine states across the US.
$$
$
HOTEL
HOTEL
Top 10 IPOs by Industry in Southeast Asia Top 10 IPOs by Southeast Asia Exchanges
Real Estate
Thailand
Singapore
Indonesia
PhilippinesMalaysiaEnergy and Resources
Consumer Business
Financial Services
79%
37%
5%5%
7%
46%
4%10%
7%
Real Estate79%
Thailand37%
Singapore46%
Indonesia7%
Philippines5%
Malaysia5%Energy and Resources
4%Consumer Business10%
Financial Services7%
Top 10 IPOs by Southeast Asia
Exchanges
Top 10 IPOs byIndustry in
Southeast Asia
05
Southeast Asia IPO market
SEA remains an economic powerhouse, with all six countries’ forecast GDP growth exceeding that of the 2019 World GDP at 2.5%.
Outlook for Southeast Asia IPO market in 2020
Malaysia: 4.5%Weakening export growth is partly offset by strong domestic demand, underpinned by favourable financing conditions and low inflation.
The Philippines: 6.1%Domestic demand will continue to benefit from supporting financing conditions and public infrastructure projects are coming on-stream.
Vietnam: 6.5%Growth in commodity importers remains solid due to robust private consumption and supportive policies.
Singapore: 2.5%Manufacturing sector is expected to return to positive growth and growth in all other sectors are expected to remain healthy.
Thailand: 2.7%Domestic demand will continue to benefit from supporting financing conditions and public infrastructure projects are coming on-stream however it is impacted by weaker exports.
Indonesia: 5.1%Growth has been supported by continuous support from private consumption, pickup in investment, solid growth on the working-age population, and improving labour markets.
*Extracted from these sources:MY, PH, VN, TH, ID, China, Japan, Europe and US GDP forecast for 2020: http://www.worldbank.org/en/publication/global-economic-prospects#dataSG GDP Estimates 2020: The Ministry of Trade and Industry (MTI).HK and Australia GDP Forecast 2020: https://tradingeconomics.com/hong-kong/forecast and https://tradingeconomics.com/australia/forecast
China: 5.9%
United States: 1.8%
Europe: 1.0%
Japan: 0.7%
Hong Kong: 1.0%
Australia: 0.9%
China USA EU Japan Hong Kong Australia
In comparison to:
Other highlights of SEA capital markets to look out for
Philippines: Proposed gradual reduction of transaction tax rate on listed stocks from 0.6% to 0.1% in 2024, and proposed cut on interest income tax from 20% to 15%.
• Encourage entry of more players
• Boost domestic capital market
Indonesia: Proposed gradual reduction of corporate tax from 25% to targeted 20% starting 2021. Listed firms can enjoy a lower-than-normal 17% corporate tax rate in the first five years following their IPOs.
• On par with Singapore’s and lower than neighbouring countries such as Malaysia, Thailand and Vietnam.
06
Southeast Asia IPO market
Thailand’s IPO market in 2019
In spite of changing market landscape and emerging challenges, Thailand maintained its strong
IPO performance for the past 4 years and is Southeast Asia’s hottest capital market in 2019, having
produced the highest IPO market capitalisation and in IPO amount raised in 2019.
Thailand saw 34 listings in 2019, with the amount of funds raised totalling US$3.0 billion.
The total IPO market capitalisation was US$12.7 billion in 2019 which is 2.4 times more than
US$5.4 billion in 2018.
1,502
2,912 2,850 2,996 4,497
13,537 5,355
12,685
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2016 2017 2018 2019
IPO
Mar
ket
Capi
talis
atio
n (U
S$ m
illio
n)
Am
oun
t R
aise
d (U
S$ m
illio
n)
Amount Raised Market Capitalisation
Thailand IPO performance in 2016-2019
07
Southeast Asia IPO market
Of the 34 completed IPOs in 2019, 35% of the IPOs were in the Consumer Business,
followed by Real Estate accounting for 32% of the completed IPOs.
However, Real Estate took the top spot in terms of funds raised and market capitalisation. Raising
US$2.1 billion which amounted to 70% of the total sales proceeds and a market capitalisation
of US$7.5 billion which is 59% of the total market capitalisation of IPOs in Thailand in 2019.
Performance of Thailand’s IPO market in 2019
0 2,000 4,000 6,000 8,000 10,000
Technology, Media and Telecommunications
Real Estate
Consumer Business
Industrial Products
Energy and Resources
Financial Services
Amount Raised/Market Cap by Industry
Amount Raised Market Capitalisation
(US$ million)
Technology, Media
and Telecommunications, 3
Real Estate, 11
Consumer Business, 12
Industrial Products, 2
Energy and Resources, 3
Financial Services, 3
34 IPOs breakdown by industry
08
Southeast Asia IPO market
Top 10 IPO Companies in Thailand in 2019
The top 10 IPOs accounted for 90% of the total funds raised in Thailand with a collective total of
US$2.7 billion. Asset World Corp Public Company Limited, the top IPO in Southeast Asia, alone
raised US$1.4 billion which constitutes 46% of the total funds raised.
No Company Listing date
Industry Amount raised (US$ million)
IPO Market Cap. (US$ million)
1 Asset World Corp Public Company Limited 10-Oct-19 Real Estate 1,382 6,151
2 S Hotels And Resorts Public Company Limited 12-Nov-19 Real Estate 247 618
3 Super Energy Power Plant Infrastructure Fund 21-Aug-19 Energy and Resources
168 168
4 Bangkok Commercial Asset Management Public Company Limited
16-Dec-19 Financial Services
164 1,767
5 Bualuang K.e. Retail Leasehold Real Estate Investment Trust 12-Dec-19 Real Estate 156 281
6 Absolute Clean Energy Public Company Limited 13-Nov-19 Energy and Resources
148 1,481
7 S Prime Growth Leasehold Real Estate Investment Trust 23-Jan-19 Real Estate 143 143
8 Dohome Public Company Limited 06-Aug-19 Consumer Business
118 472
9 Aim Commercial Growth Leasehold Real Estate Investment Trust
12-Jul-19 Real Estate 94 94
10 Index Living Mall Public Company Limited 26-Jul-19 Consumer Business
75 361
“The performance of Thailand’s IPO market in 2019 is largely driven by home grown companies and both foreign and domestic investor liquidity is high, which continues to generate strong appeal for investors and fund managers. We are seeing a strong deal pipeline for Thailand and we expect capital market activity to continue to increase the total market capitalisation of the Stock Exchange of Thailand.” Ms Wilasinee Krishnamra, Disruptive Events Assurance Leader, Deloitte Thailand.
09
Southeast Asia IPO market
Singapore’s capital market experienced an improvement in performance in 2019, compared to
2018. Singapore saw 11 listings in 2019, with the amount of funds raised totalling S$3.1 billion (US$2.3 billion), an increase of 425% as compared to 2018’s S$730 million (US$551 million). This includes 4 trusts on SGX Mainboard with S$3.0 billion (US$2.2 billion) funds raised. On the Catalist board, 7 deals raised S$59 million (US$43 million).
Singapore’s IPO market in 2019
235 298 134 01,919 4,171 422
3,045106 273 174 59
4,392
8,474
2,883
4,353
0
2,000
4,000
6,000
8,000
10,000
0
1,000
2,000
3,000
4,000
5,000
2016 2017 2018 2019 Mar
ket
Capi
talis
atio
n (S
$ m
illio
n)
Am
ount
Rai
sed
(S$
mill
ion)
Singapore IPO performance (2016–2019)
Amount Raised - Mainboard
Amount Raised - Mainboard (REITs & Trusts)
Amount Raised - Catalist
Total Market Capitalisation
Singapore IPO performance (2016 – 2019)
Singapore remains attractive for foreign issuers to list with 37% of IPOs between 2016 to 2019
being companies with operations or assets located overseas. Furthermore, foreign issuers are able
to raise large amounts of funds on the Singapore Exchange, raising S$7.5 billion equivalent to
69% of the total funds raised.
40
25
9
24
4129
950
3594
111
913 1140
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
5
10
15
20
25
30
35
40
45
Singapore Europe USA Malaysia Australia People's Republic of China
Sale
Pro
ceed
s (S
$ m
illio
n)
Num
ber
of d
eals
No. of IPOs Total Amount Raised
Total amount raised by geography (2016 – 2019)
10
Southeast Asia IPO market
Singapore IPOs in 2019
No Company Mainboard/Catalist
Date of listing
Amount Raised (million) in source currency
Amount Raised (S$’m)
IPO Market Cap (million) in source currency
IPO Market
Cap (S$’m)
PE/PB Ratio
IPO Offer Price
Current Price (31/12/2019)
% Change
Industry Country of operations
1 Grand Venture Technology Limited
Catalist 23/01/2019 S$13.20 13.20 S$64.42 64.42 8.76 S$0.275 S$0.265 -4% Industrial Products
Singapore
2 Sim Leisure Group Ltd.
Catalist 01/03/2019 S$5.81 5.81 S$29.53 29.53 56.40 S$0.22 S$0.22 0% Consumer Business
Malaysia
3 Reclaims Global Limited
Catalist 11/03/2019 S$4.60 4.60 S$30.13 30.13 8.07 S$0.23 S$0.31 35% Industrial Products
Singapore
4 Fortress Minerals Limited
Catalist 27/03/2019 S$15.00 15.00 S$100.00 100.00 n.m. S$0.20 S$0.235 18% Energy and Resources
Malaysia
5 ARA US Hospitality Trust
Mainboard - Trusts
09/05/2019 US$498.00 686.69 US$672.59 927.43 1.020 US$0.88 US$0.87 -1% Real Estate
USA
6 Eagle Hospitality Trust
Mainboard - Trusts
24/05/2019 US$565.83 780.23 US$676.95 933.45 0.890 US$0.78 US$0.545 -30% Real Estate
USA
7 Alliance Healthcare Group
Catalist 31/05/2019 S$6.40 6.40 S$41.58 41.58 11.40 S$0.20 S$0.14 -30% Life Sciences
and Health Care
Singapore
8 TrickleStar Limited
Catalist 18/06/2019 S$3.90 3.90 S$21.27 21.27 6.53 S$0.26 S$0.31 19% Industrial Products
Malaysia
9 ST Group Food Industries Holdings Limited
Catalist 03/07/2019 S$9.62 9.62 S$63.96 63.96 18.60 S$0.26 S$0.26 0% Consumer Business
Australia
10 Prime US REIT
Mainboard - REIT
19/07/2019 US$612.00 838.07 US$813.00 1,113.32 1.048 US$0.88 US$0.965 10% Real Estate USA
11 Lendlease Global Commercial REIT
Mainboard - REIT
02/10/2019 S$740.31 740.31 S$1,027.79 1,027.79 1.082 S$0.88 S$0.93 6% Real Estate Singapore
Total count: 11 2019 Total: S$3,104 S$4,353 *Average: 2.00%
Total count: 15 2018 Total: S$730 S$2,883 *Average: -21.07%
Total count: 20 2017 Total: S$4,742 S$8,474 *Average: 35.34%
Total count: 16 2016 Total: S$2,261 S$4,392 *Average: 11.61%
No. of IPOs
Amount Raised
(S$ million)
IPO Market Capitalisation
(S$ million)
Mainboard Trusts 4 3,045 4,002
Catalist 7 59 351
Total 11 3,104 4,353
* Average for the respective year
11
Southeast Asia IPO market
REITs and Property Trusts in Singapore
The IPO market in Singapore in 2019 witnessed the launch of two stapled hospitality trusts and two REITs.
Singapore is seen as the Asian Hub for REITs and Property Trusts in Asia (excluding Japan). Much credit can be lauded to an early mover advantage, having being the first in the region to roll out regulations for REITs. The achievement enjoyed in this sector can also be attributed to the stable business environment in Singapore and its progressive regulatory framework, for example, being the first in the Southeast Asia region to roll out a Business Trust framework in 2004.
In Asia (excluding Japan), Singapore has the highest number of REITs and Property Trusts and the largest market capitalisation. REITs and Property Trusts are highly sought after as they offers higher returns than fixed income in Singapore. Investors are also inclined to the stability and security that REITs and Property Trusts offer.
REITs and Property Trusts
Singapore Hong Kong Australia Japan
Market Cap US$83.6B US$36.6B US$121.7B US$148.6B
Average Dividend Yield 6.20% 5.26% 4.42% 4.00%
Asset location Domestic + Offshore Mainly China assets Mainly Domestic assets Mainly Domestic assets
Average P/B 1.1x 0.6x 1.1x 1.5x
No. of REITs and Property Trusts 44 12 52 64
Early mover advantage
1971
Australia
1999
SG
2000
Japan
2009
2015
2003
Hong Kong
2005
Malaysia
Philippines
SEA
Thailand
VietnamSEA
2016
Indonesia
12
Southeast Asia IPO market
Singapore’s 44 REITs and Property Trusts as at 31 December 2019
Singapore-listed REITs and Property Trusts are well-diversified with assets located domestically and internationally.
In 2019, 3 of the REITs were pure-play US REITs while Lendlease was a combination of commercial properties in Singapore and Italy.
Sufficient liquidity in the market allows REITs and Property Trusts in Singapore to hold successful secondary fundraisings for acquisitions and expansion of the existing portfolio to reap even more long-term benefits for their shareholders.
AssetOwnership
Number of Trusts by
sector
Overseas 38% Singapore +
Overseas48%
Singapore 14%
Diversified14%
Retail 23%
Hospitality16%
Office 18%
Specialised 2%
Healthcare7%
Industrial 20%
6.49.5
4.96.6
4.00.6 2.5
4.72.0 3.1
2.3
4.1
2.8
4.36.7
5.53.4
5.9
2.0 1.2
2.2
2.4
0.9
2.30.9
1.3 2.3
3.1
4.1
7.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
REITs and Property Trusts' Secondary Fund Raised
Secondary Fund Raised excluding REITs and Property Trusts
Funds Raised from New Listings
(S$
billi
on)
Total amount raised by geography (2010-2019) Total amount raised by geography (2010 to 2019)
13
Southeast Asia IPO market
Catalist listings and the changing landscape of fundraising
Singapore Exchange (SGX) Catalist listings in 2019 experienced a slowdown with only 7 IPOs, the lowest number of deals in the past 4 years with total funds raised only one-third of last year’s S$174 million (US$131 million).
With the changing landscape of fundraising, companies now have more options to meet their fundraising needs.
Given the numerous fundraising options in the market available, companies now have more choices for fundraising to suit their needs.
Companies with sound business plans would weigh out their options and tap into resources that are most beneficial for them.
These companies would also get themselves ready so as to strike when the market opportunity arise.
The Catalist board is an established platform for growth companies to tap on the capital market to support their expansion strategies. It benefits growth companies who regularly engage their investor pool through fundraising for continual growth initiatives. These companies could eventually step up to the Mainboard to access larger pool of capital.
The local bourse now faces a more competitive environment with more fundraising options for issuers that incur lower costs than traditional methods of listing on the SGX, and a greater variety of investment opportunities for investors.
SGX Catalist Board Other fundraising options
Proven access to capitalSupport acquisitive strategies through friendly regulatory framework
Well-established sponsor supervised regime
Speed-to-market
4-5 weeksNotification processing time
Public
SGXOverseas Stock
Exchanges
Venture Capital
PrivateEquity
Private Exchange
Private
11
1312
7
$106
$273 $174
$59
$529
$1,473
$952
$351
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
0
2
4
6
8
10
12
14
2016 2017 2018 2019
Tota
l Am
ou
nt
Ra
ise
d/M
ark
et
Ca
p (
S$ m
illio
n)
Nu
mb
er
of
listi
ngs
Number of IPOs Total Amount Raised (S$ m) Total Market Cap (S$ m)
Amount raised, market capitalisation and number of IPOs 2016-2019
14
Southeast Asia IPO market
Key Highlights for Singapore IPO market in 2019
Singapore IPO market performed well in 2019 with the listing of four REITs/Property Trusts and seven listings on the Catalist board. Our local exchange has also seen active secondary fundraising from existing listed companies/trusts to aid them in their expansions.
Singapore possesses a strong reputation as a REIT and Property Trust hubSingapore has the highest number of REITs and Property Trusts and the largest market capitalisation in Asia (excluding Japan) with well-diversified portfolio of assets located domestically and internationally. In 2019 the local bourse had four REIT and Property Trusts listed of which one was the 2nd highest fund raised in Southeast Asia.
Singapore is attractive to foreign issuersCompanies with foreign operations accounted for 98% of funds raised in Singapore IPO market for 2019. Furthermore, the highest fund raised in Singapore for 2019 was by Prime US REIT, a pure-play US commercial REIT, at S$838 million.
What is the outlook for 2020?
“For Singapore, we are expecting a strong pipeline of listings from the REITs and service-based companies in 2020. While there is no lack of liquidity in Singapore’s capital market, as evident from the strong secondary fundraising market of US$6.1 billion, and the sizeable funds raised of US$2.3 billion from IPOs in 2019, we foresee that companies will be more discerning in weighing the pros and cons of an IPO vis-à-vis a private capital raising option” Ms Tay Hwee Ling, Disruptive Events Assurance Leader, Deloitte Southeast Asia and Singapore.
15
Southeast Asia IPO market
16
Southeast Asia IPO market
Contact us
To find out more, please contact the respective DEA Country Leaders:
Southeast Asia and SingaporeTay Hwee LingLeader, Disruptive Events [email protected]+65 6216 3258
CambodiaKimleng [email protected]+855 23 963 788
IndonesiaJoe [email protected]+62 21 5081 8009
MalaysiaWong Kar [email protected]+60 3 7610 8820
ThailandKrishnamra [email protected]+66 2034 0149
GuamTung [email protected]+1 671 646 3884
PhilippinesBaltazar [email protected]+63 2 581 9000 ext 011
VietnamNam Pham [email protected]+84 24 710 50599
LaosSurachutikarn [email protected]+66 2034 0114 ext 40114
MyanmarCho [email protected]+95 96 7980 6766
17
Southeast Asia IPO market
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