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Singapore-listed equity offerings up 6.1% year-to-date, strongest since 2014

SINGAPORE-LISTED equity offerings totalled US$3.8 billion so far this year, a 6.1 per cent increase in proceeds compared to the first nine months of 2017 – the strongest first nine-month period since 2014. 

This was driven by follow-on offerings in Singapore stock exchanges that raised US$3.3 billion in proceeds so far this year, up 130.3 per cent from a year ago, according to Thomson Reuters data.

However, initial public offerings (IPO) listings raised US$518.1 million, down 75.9 per cent from the first nine months of 2017.  Real estate accounted for 67 per cent of the market share, followed by 26.4 per cent from Media & Entertainment.

Singaporean companies tapping the equity capital markets (ECM) raised US$3.8 billion so far this year, a 10.4 per cent increase in proceeds compared to the first nine months of 2017. The number of ECM issuance has also gone up 33.3 per cent from a year ago.

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But Singapore’s ECM activity declined in the third quarter of 2018 as proceeds reached US$533.4 million, a 77.2 per cent sequential decrease from the US$2.34 billion raised in the second quarter, and down 77 per cent in proceeds compared to the US$2.32 billion raised in the third quarter of 2017.

IPOs by Singaporean companies in domestic and overseas stock markets raised US$667.2 million year to date, down 68.3 per cent in proceeds compared to last year despite a 23.5 per cent increase in number of IPOs.

Follow-on offerings from Singaporean issuers raised US$2.4 billion in proceeds, a 78.9 per cent jump from the comparative period last year as number of issuance picked up 22.7 per cent. Follow-on offerings accounted for 63 per cent of Singapore ECM so far this year, while IPOs captured 17.6 per cent market share in terms of proceeds. Convertible offerings registered 19.4 per cent market share.

Singapore-based Sea Ltd has raised US$500 million from a five–year convertible bond in June, which is the biggest Singapore equity offering this year. This is followed by Frasers Logistics & Industrial Trust’s US$355.9 million (S$476.3 million) preferential offering in June and Ascendas Reit’s US$328.0 million (S$452.1 million) follow-on offering in September.

Sasseur Reit’s US$315.6 million (S$415.6 million) SGX-listed (Singapore Stock Exchange-listed) IPO is the largest Singaporean-issued IPO to date. 

DBS Group leads the ranking for Singapore ECM underwriting with US$931.4 million in related proceeds, capturing 24.5 per cent of the market share. Goldman Sachs follows behind in second place with 16.1 per cent market share and Citi with 12.5 per cent market share at the third spot.

Real estate accounted for majority of the nation’s ECM activity with 73.4 per cent market share worth US$2.8 billion in proceeds, a 135.2 per cent jump from over a year ago.  Eight out of the top 10 deals this year were Reits issuance, led by Frasers Logistics & Industrial Trust and Ascendas Reit’s (real estate investment trust) follow-on offerings, and Sasseur Reit’s US$315.6 million IPO. 

Media & Entertainment followed behind in second place with 13.2 per cent market share and Industrials at third place with 4.3 per cent market share.