SGX expects more IPOs in 2017 despite increased volatility

Its attraction strategy is paying off.

The Singapore Exchange is expecting more listings and fundraising activities this year, a report by CIMB said.

During the analyst briefing following its second-quarter results, CEO Loh Boon Chye guided that the IPO pipeline appears to be healthy, with more listings and funds to be raised in FY17 vs. FY16.

"SGX’s sectoral approach to attracting listings appears to be paying off, with the new IPOs expected to come from the consumer, real estate, infrastructure and technology sectors that they have targeted," CIMB noted.

During the second quarter, the local bourse booked higher securities revenue on back of increased market volatility, while derivatives volume picked up on back of higher demand for INR/US FX futures.

"Upside risks could come from higher market volatility and return of investor confidence amid more positive economic data, while downside risks could stem from the market returning to a risk-off mode amid political uncertainty," CIMB said.  

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