New SGX listings in 2018 may curb hollowing out from delistings

2017 saw S$12b of delistings with new listings adding only S$8.7b in market value; China acquisitions likely to continue to drive privatisations

Angela Tan

Published Wed, Jan 10, 2018 · 09:50 PM

Privatisation

Singapore

THE stock market rally during the latter half of 2017 has propelled the Singapore Exchange (SGX) into the "trillion-dollar club", but more consolidation is expected with China companies still hungry for mergers and acquisitions (M&As).

While delistings may be normal in capital markets, their extent is worrisome in Singapore, where more than S$12 billion in market value was erased in 2017 as a result of listed securities losing their listing status. The figure is almost 40 per cent higher than the S$8.7 billion in market value generated by newly-listed companies in the same period.

Delistings also raised alarm bells in 2016 when several high-profile and large-cap companies like Neptune Orient Lines, SMRT Corp, Tiger Airways and OSIM International were privatised. At the end of 2016, S$15.9 billion in market capitalisation was lost from delistings, up from S$8.9 billion in 2015, according to The World Federation of Exchanges (WFE). WFE also showed new listings added only S$6.4 billion in market value at the end of 2016. Exper…

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes