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SGX tipped to rank as ninth listing destination by 2030

SGX will eclipse the Johannesburg and Deutsche bourse.

The Singapore Exchange can cash in on the region’s growing capital markets expertise as the bourse is expected to rank as the ninth listing destination for issuers by 2030, according to a report from PwC. 

Also read: Singapore IPOs lag Asian peers as homegrown companies rush to list abroad

In a survey of nearly 400 executives, 15% of issuers are considering the possibility of a Singapore listing in 2030 apart from their own exchanges, a figure that puts the city ahead of the Johannesburg, Bovespa (Brazil) and Deutsche bourse. Currently, only 11% of issuers are considering the possibility of a Singapore listing which puts the bourse at eleventh place.

Also read: Singapore IPO proceeds plunge to $730m in 2018

Although the exchanges of developed markets continue to be listing hotspots with the New York Stock Exchange tipped to retain the top spot in the listing destination followed by Nasdaq, London and Hong Kong bourses, emerging markets have rapidly narrowed the lead since 2011.

In fact, the SGX has been identified along with Indian bourses, Shanghai exchange, Brazil’s Bovespa, Australia exchange as amongst the exchanges that have become more attractive to issuers, in a development that reflects how SGX is shaping to be a Southeast Asian IPO hub.

Governance in the more established EMs like Hong Kong, Singapore, Malaysia and Taiwan has ‘actually pretty much on par with that in major markets in the US and Europe nowadays,’ Philippe Espinasse, investment banking expert was quoted in a report, although investors in EM cannot initiate class action lawsuits unlike in the US.

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