Could cash-rich private investors be killing IPOs?

THE Singapore Exchange is often bashed for its paltry collection of listings each year, but a broader perspective should be taken on this matter to highlight the fact that the stock exchange is not alone in this trend. The malaise is global.

Even on foreign bourses, listings are drying up. According to EY Global's Q3 Initial Public Offering (IPO) market report, for the first nine months of 2018, there were 1,000 IPOs globally, down 18 per cent year-on-year, although they collectively raised 9 per cent more at just over US$145 billion, which shows that the size of deals has grown.

For the period, the United Kingdom and Ireland saw a 28 per cent year-on-year drop in the number of IPOs to 38, and a 48 per cent decline in proceeds raised to US$5.2 billion. China, too, saw IPOs plunge 75 per cent to just 86 deals worth US$17.8 billion, 31 per cent lower than a year ago.