SGX listings talks pick up, but market conditions need to stabilise: CEO

THE Singapore Exchange (SGX) is seeing “increased discussions” with companies that are looking to expand their investor base and seek additional capital, chief executive Loh Boon Chye said on Thursday (Jul 14).

Speaking to reporters after Philippine liquor giant Emperador’s secondary listing on the SGX, Loh said: “We have, I would say, more active conversations, more active discussions (and) increased enquiries. Some companies have proceeded to have preparations.”

However, he added that there is also a need for markets to stabilise around valuation. This comes amid concerns over rising interest rates and high inflation globally.

“We need the markets to find a base, to find adjustments between expectations of value and valuation between investors and companies,” Loh said.

Eventual listing activity would depend on market conditions, but Loh said he is “pleased with the increased level of discussion and conversation with companies.”

Over the last 12 months, SGX has seen 18 initial public offerings – including 3 special purpose acquisition companies – raise close to S$2 billion, Loh noted.

The interest in SGX listings comes from primary, secondary and dual listings.

In total, SGX has around 30 companies that are secondary listed here, with a combined market capitalisation of close to S$270 billion.

Some of the largest secondary-listed companies on the local bourse include Prudential, as well as Straits Times Index constituents Jardine Matheson and Hongkong Land.

A number of large companies have also carried out secondary listings in recent years.

Sri Trang Gloves (Thailand), which is primary listed on the Stock Exchange of Thailand, carried out its secondary listing on the SGX in May 2021, with a market capitalisation of around S$5.4 billion at listing.

In May this year, Chinese electric vehicle manufacturer Nio also carried out a secondary listing on SGX, giving investors another location to trade its shares outside of New York and Hong Kong. The counter has a market capitalisation of around US$34.9 billion as at Thursday.

Loh noted that the performance of Nio’s listing has been good, with trading volume and liquidity better than their expectations.

Emperador, which has a market capitalisation of around S$6.8 billion, is the first Philippine company to have a secondary listing in Singapore, with its primary listing on the Philippine Stock Exchange.

“Across Asean we're seeing good enquiries, increased discussion and obviously companies outside of Asean too,” Loh said.