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Stock sales on SGX drop 76% in Q1 as IPOs dry up
Equity capital raised on the Singapore Exchange fell 76 per cent in the first quarter of 2015 as the initial public offering market dried up, according to preliminary data from Thomson Reuters.
Proceeds from stock sales fell to US$175.6 million, the lowest January-to-March performance since 2003, when only US$104.5 million was raised. All of the proceeds so far this year have been from follow-on issues; there were no IPOs, the first empty quarter for new listings since data was available in 2000.
Issues from the consumer staples sector dominated the slow quarter, with US$99.9 million, or 56.9 per cent of the total raised, coming from the sector.
Singapore-domiciled companies in general were not very active either when it came to selling equity.
Total equity proceeds from Singapore-based companies, whether raised in Singapore or overseas, fell 81 per cent to US$146.6 million in the first quarter.
Thomson Reuters estimated that only US$3.6 million in fees were collected by equity capital market bankers from Singapore-domiciled companies' deals during that period.