Equity capital market activity in Singapore up 44% in year-to-date

SINGAPORE-domiciled firms raised US$173.6 million in the equity capital markets (ECM) so far this year, up 44.1 per cent from last year's sluggish start which saw US$120.5 million raised, according to Thomson Reuters data.

Majority of the equity capital raisings by Singaporean companies or over 80 per cent were done through follow-on offerings with US$144.7 million in proceeds - up 20.1 per cent from last year.

Initial public offerings (IPOs) captured 16.7 per cent of market share in terms of proceeds. According to Thomson Reuters' first quarter preliminary review, the IPO scene could liven up.

"Total IPO issuance from Singapore companies - in domestic and overseas markets - could potentially improve this year with the anticipated IPO of Singapore-based BOC Aviation in the pipeline for a Hong Kong listing that could raise as much as US$3 billion," said the report.

The pipeline for new listings in Singapore also looks promising with Canadian insurer Manulife Financial preparing to revive the US$500 million listing of Manulife US Reit, and Chinese property developer Greenland Group's plans to set up a real estate investment trust (Reit) with Singapore-based Amare Investment Management Group and list the Reit here in the near term.

Primary bond offerings from Singapore-domiciled issuers reached US$6.6 billion - an increase of 7.7 per cent from 2015's first quarter - as local companies tapped both domestic and offshore bond markets to raise funds.

According to the report, this is the highest first quarter period in terms of proceeds since 2013 when US$7.6 billion was raised.

Mergers and acquisitions involving Singapore firms that were announced fell 54 per cent to US$6.5 billion in terms of value, while the number of deals dropped 34 per cent.