Weak valuations, liquidity on SGX could drive further listings outside Singapore in vicious circle

A STREAM of delistings from the Singapore Exchange (SGX) – and the lack of new listings to replace them – could lead to a hollowing out in the Singapore market, according to industry watchers. 

They also warned that the number of delistings could reinforce the perception of a lack of liquidity and poor valuations in the Singapore market, which has led to an increase in the privatisation of Singapore-listed companies. 

“If this issue is not properly addressed, it could in turn perpetuate the perception that the Singapore market is not an attractive place to raise capital,” said Robson Lee, partner at Kennedys Legal Solutions.