How did Singapore fare in the IPO scene in 2023?
Singapore saw five Catalist IPOs in the first 10.5 months of last year.
Singapore’s IPO scene was subdued in 2023 given the lack of sizable Mainboard IPOs, REITs or SPACs, which typically bolster the market’s performance.
In the first 10.5 months of 2023, Singapore saw five Catalist IPOs raising US$29m ($39.9m).
“REITs and Business Trusts have historically been the stronghold of the Singapore IPO market. However, with the uncertainties surrounding interest rates, REIT aspirants may adopt a wait-and-see approach and postpone their listing plans,” Deloitte reported.
Deloitte added that only Temasek-backed Vertex Technology Acquisition Corporation (VTAC) has acquired a target firm of the three SPACs listed in early 2022
“VTAC has inked a deal to buy Taiwanese live-streaming platform 17Live. The conditional sale and purchase agreement is subject to approval by VTAC’s shareholders and SGX. When that happens, we may see more SPACs coming on board,” the expert said.
Whilst Singapore’s IPO performance appears subdued this year, Deloitte noted that the country has a wealth of high-calibre companies “ready to explore cross-border listings on global exchanges.”
“They are also enjoying international recognition for their robust business fundamentals. The comprehensive economic infrastructure and initiatives by the Singapore government in conjunction with SGX provides an ideal platform for companies aspiring to go public,” said Darren NG, disruptive events advisory deputy leader, Deloitte Singapore.
“Singapore, with its political stability and strong regulatory environment, sets the stage for unprecedented capital inflows, acts as a strategic bridge between the US and China, and is the regional headquarters of choice for numerous funds and family offices,” Ng added.