SGX sees ‘robust’ IPO pipeline as Singapore explores ‘sweet spot’ to draw listings

SINGAPORE will need to find its “sweet spot” as it seeks to attract listings from companies in the region, said Singapore Exchange’s (SGX) head of global sales and origination, Pol de Win.

Competition from other South-east Asian bourses is inevitable, as many companies prefer to list on their home turfs. Thus, Singapore must look at the types of companies that will do better here than elsewhere, he said.

For example, for larger firms with regional operations across multiple markets, Singapore could offer some distinct advantages, such as access to global investors and better visibility.

Singapore could also attract regional firms seeking access to international markets.

De Win noted that companies in the “new economy” space – featuring high-growth, tech-focused industries such as e-commerce and artificial intelligence – are expected to play a significantly larger role over the next five years.

He described the initial public offering (IPO) pipeline as “robust and growing”, and added that companies from a “diverse range of sectors” are preparing to list.

With the number of listings on SGX falling to just four in 2024 – from six in 2023 and 11 in 2022 – the bourse operator expects IPO momentum to pick up in the second quarter of this year.

“The IPO market has been very quiet for three-plus years now, not only here in Singapore, but also in other parts of the world,” he said.

However, he pointed to the US as an important bellwether for global IPO activity. With IPOs starting to pick up in the US, he expects a positive ripple effect on markets worldwide, including Asia and Singapore.

“In certain situations, we work very closely with the US exchanges to look at companies that might consider dual listings,” he added.

He further noted that some companies from Asia may seek a secondary listing in the US to access its deep capital markets and investor base while maintaining visibility and presence in Asia through a Singapore listing.

The macroeconomic environment has also created a strong need to recirculate capital among shareholders of companies that have been privately funded for extended periods, said de Win.

He noted that from a supply perspective, companies need to enter the market, while at the same time, they require capital to support their growth.

However, the ultimate goal, he said, is not just attracting capital, but building sustained momentum. This, he added, can be achieved through recently announced measures and ongoing initiatives.

With the Monetary Authority of Singapore review group measures to strengthen the local bourse, IPOs are a “key area of interest”, said Ng Yao Loong, head of equities at SGX.

Noting both the robust discussions within the review group and its workstream meetings, he believes there is “clear alignment” on SGX’s role in helping regional enterprises – including those in Singapore – secure permanent capital and lower their funding costs.