Small-cap stocks to gain ground over privatisation surge

Privatisations rose from 14 in 2018 to 34 in 2019.

On 6 November, Citic Envirotech received an offer to voluntarily delist from SGX at an exit offer price of 55 cents, which represented a premium of 68.5% over 3M VWAP and 48.6% over the last closing price. This exit offer is only one of many privatisation practices gaining investor interest for the year.

According to UOB Kay Hian, an increase in the number of privatisation practices in Singapore could spark interest in deep-value small-cap stocks.

“We believe deep-value names with high margin of safety have room for further re-rating, especially in the current uncertain macroeconomic environment which faces risks of a trade war and slower growth. Companies with high cash reserves and dividend yields can weather any downturn better than peers,” wrote analyst John Cheong.

The number of privatisations rose to 34 in 2019, from 14 in the previous year, attributed to lacklustre valuation, lack of funding requirements, and backing from new partners. The highest premium offered this year was at 195%.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia