MARKETS & INVESTING | Staff Reporter, Singapore

Singapore's equity capital market proceeds crashed 30.1% to $6.73b YTD

IPO proceeds plunged 83.9%.

Singaporean companies tapping into the equity capital markets (ECM) raised $6.73 (US$4.89b) YTD which is 30.1% lower compared to the annual period in 2017 of $9.61b (US$7b), according to data from Refinitv, Thomson Reuters’ financial and risk business arm.

In Q4, Singapore ECM activity declined 15.4% QoQ from $1.21b (US$881.2m) in Q3 to $1.02b (US$745.5m). In YoY terms, proceeds plummeted 79.1% from the strong $3.16b (US$2.3b) seen in Q4 2017.

“Initial public offerings (IPOs) by Singaporean companies in domestic and overseas stock markets raised $947.34m (US$689.9m) so far this year, down 83.9% in proceeds compared to 2017m and witnessed the lowest annual period in terms of proceeds since 2015,” Refinitiv said in a statement.

Also read: Singapore IPO proceeds plummet 85% to $715m

One the other hand, follow-on offerings from Singaporean issuers raised $4.81b (US$3.5b) in proceeds which is a 39.2% increase from 2017. Follow-on offerings accounted for 70.8% of Singapore ECM, according to Refinitiv, whilst IPOs captured 14.1% market share in terms of proceeds.

According to Refinitv data, digital entertainment platform Sea Ltd raised $686.57m (US$500m) from a five-year convertible bond in June, making it the largest Singapore equity offering in 2018. It is followed by OUE Commercial REIT’s $587.5m (US$426.4m) rights offering in October to finance a planned acquisition.

The real estate industry accounted for a majority of the Lion City’s ECM activity with 77.4% market share worth $5.22b (US$3.8b) in proceeds which is an 8.2% increase from 2017.

“Nine out of the top 10 deals this year were REITS issuance, led by OUE Commercial REIT, Frasers Logistics & Industrial Trust and Ascendas REIT follow-on offerings, and Sasseur REIT’s $433.37m (US$315.6m) IPO,” Refinitiv said in a statement.

Also read: Equity capital market activity hits two-year high at US$3.8b YTD

The media & entertainment and industrial sectors followed behind in with 10.2% and 4.7% market share, respectively.

Meanwhile, underwriting fees for equity assistance by Singaporean companies fell 37.9% YoY to $144.04m (US$104.9m), data showed. DBS Group led the fee rankings for Singapore equity issuance with $36.25m (US$26.4m) in estimated fee revenue, accounting for 25.2% of the wallet share YTD in 2018. Goldman Sachs and Citi rounded up the top three for equity fee underwriting with 12% and 10.6% wallet share, respectively.

Singapore ECM underwriting rankings saw a similar trend with, with DBS Group leading the pack with 23.2% market share (US$1.1b) in related proceeds, followed by Goldman Sachs (13.6%) and Citi (10.8%).

“Singapore-listed equity offerings which are combined IPOs and follow-on offerings listed in Singapore’s stock exchanges totaled US$4.9b YTD, a 16.2% decline in proceeds compared to 2017,” Refinitiv said in a statement. “South Korean messaging app operator Kakao Corp has raised US$1b from the sale of global depository receipts in the Singapore Exchange (SGX).” 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.