State of equity, debt, M&A markets

THE state of corporate finance in Singapore has been rather patchy, public offerings have been pathetic but there's been plenty of mergers and acquisitions (M&A) activity, especially cross border deals. Another booming segment is the local debt market. We ask the experts what's ailing IPOs (initial public offerings) and for suggestions on improving the low trading volumes dogging the stock market. We also ask them for 2015 prospects.

The Business Times: IPOs have been rather slow in Singapore, what's the reason for this?

Kuan Ern Tan: Unlike the bull market we saw in 2007, there is a lack of market direction currently. In such market conditions, investors are sitting on the sidelines. Many investors go with the flow, so when they see a large number of their peers sitting deals out, which has happened in the last 18 months, one is inclined to do the same, which has resulted in a lack of conviction and momentum in the new issue market. This results in vendors and entrepreneurs holding back their deals or looking at private capital options.