Singapore IPO activity disappoints in 1H17

Eight IPOs launched in the said period raised only US$324m.

The latest report from Ernst & Young Solutions LLP noted that there were five initial public offerings (IPOs) in the second quarter of the year, raising a combined total of US$182m.

For the first half of the year, eight IPOs were launched, raising US$324m in capital. This is less than the proceeds of US$1.2b collected by nine IPOs in the same period last year.

Meanwhile, EY noted that issuers have listed at the higher end of the IPO range, with first-day returns turning in positive. For instance, Sanli Environmental Limited rose to 78% above its listing price in its first day of trading.

The report also noted that IPO activity came from a diverse list of sectors for the said period. IPOs raised hailed from the real estate, consumer products and services, and industrials sectors.

Whilst IPO activity in the first half of the year is lower than last year, the second half of 2017 is expected to turn out better.

"We expect more large IPOs to come to market, especially in the technology sector. We expect to see increased liquidity at the same time, as investors see strong returns in the capital markets," the report said, noting that local tech companies are given access by SGX to capital markets.

To recall, SGX signed a memorandum of understanding with the InfoCommunications Media Development Authority of Singapore (IMDA) to help local tech companies prepare for an IPO.