Why is there a lack of research coverage for 'disruptive' companies?
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SINGAPORE Exchange (SGX) has, in the last two years, been aggressively wooing the technology sector, enticing tech startups to list on the exchange, and educating investors on new-economy businesses through workshops. But it may have its work cut out for it - no thanks to a prevailing absence of research analysts willing to stick their necks out for and put a valuation on these seemingly "disruptive" companies.
Take YuuZoo and The Trendlines Group. The former is a mainboard-listed social networking and e-commerce company, and the latter, an Israeli startup incubator listed on Catalist. Interestingly, the two are the first of their kinds to be listed on the local bourse, and both have received little research coverage since their listings in 2013 and 2015 respectively.
When YuuZoo tried to take matters into its own hands, it was reprimanded by SGX, understandably so given the circumstances.
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