Is Singapore failing in its bid for Asia's IPO market?
Companies are choosing to list in Hong Kong instead.
As the regional stock exchange competition heats up, the Singapore stock exchange may be losing more than it gains as there were more cross-border listings than IPOs held within its own borders in Q1, according to EY’s first quarter Global IPO report.
Hong Kong continues to be a preferred IPO destination in the region as the report noted that three in five cross border IPOs, which raised a combined US$115m, were Singapore companies.
Back home, however, things are noticeably dismal as only one flotation which raised $0.01b was registered in Singapore as of March 14. This represents a 67% decline QoQ and puts the lion city at par with Myanmar in numbers of listings.
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Things are looking grim for Singapore especially when pitted against Hong Kong which registered over a third of public listings (57) in Asia Pacific which collectively raised $3.09b in the period until March 14. Indonesia registered 3 IPOs whilst Malaysia and Thailand were able to post 6 listings over the same period.
Singapore may need to do more to catch up with its regional peers as the year ahead holds more heated competition between local ASEAN exchanges for Southeast Asian listings, EY suggested.