More variety of counters on offer for investors in Singapore’s 2014 IPO market

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More variety of counters on offer for investors in Singapore’s 2014 IPO market

Growing presence of unique businesses and foreign assets

“Beyond the traditional heavyweight real estate and energy & resources industries, a broader range of sectors came to market in 2014. Non-conventional sectors that listed this year covering entertainment, luxury cars and watches, defence, healthcare and furniture may not be considered blockbusters but the emergence of these unique counters could open doors for others to consider listing options on SGX,” said Dr Ernest Kan, Deloitte Southeast Asia Leader for Global IFRS and Offerings Services.

Singapore, 1 December 2014 — IPO investors were presented with more interesting counters on the Singapore Exchange (SGX) this year. Varied lifestyle-related companies comprising a movie maker/producer and luxury sports car group were on board the SGX, adding colour to its portfolio of assets.

“Beyond the traditional heavyweight real estate and energy & resources industries, a broader range of sectors came to market in 2014. Non-conventional sectors that listed this year covering entertainment, luxury cars and watches, defence, healthcare and furniture may not be considered blockbusters but the emergence of these unique counters could open doors for others to consider listing options on SGX,” said Dr Ernest Kan, Deloitte Southeast Asia Leader for Global IFRS and Offerings Services.

While IPO heavyweights in the real estate sector continue to dominate the Singapore IPO market in 2014, other types of asset properties are also attracting investor interests. “In preceding years, REITs and Business Trusts were mainly dominated by industrial or commercial properties. We are starting to see unique asset properties like golf courses and cable TV getting listed here and from the good subscription, you can see that investors are excited about less-ordinary counters,” explained Dr Kan who is also the Chief of Operations for Clients & Markets at Deloitte Singapore.

Singapore remains the largest REIT market in Asia, outside Japan. A high proportion of foreign assets can be seen raising funds on SGX. More than 67% of 2014 IPOs have foreign assets with key assets coming from Germany and Japan. Notable IPOs with foreign assets completed this year included Accordia Golf Trust (S$759 million) and iREIT Global (S$369 million) which emerged the first and third top fund raisers. Deloitte acted as the Reporting Accountants for these two IPOs which claimed a huge share of Singapore’s IPO market accounting for S$1.13 billion.

Another bright spot for 2014 was the record five-year high funds raised by Catalist IPOs amounting S$285 million. The listing of Talkmed Group Limited reaped a 390% increase in share price and was also one of the six sizable Catalist listings this year with market capitalisation of above S$100 million.

On the year in review of the Singapore IPO market, Dr Kan expressed, “While overall equity offerings took a dip in part to global factors, our capital market remained buoyant with Catalist listings holding a stronger presence and the continuing influx of foreign assets into our equity market. The arrival of new asset types has injected positivity and opportunities in the market for fund raisers and investors alike. This is no doubt the result of SGX’s success in their global footprint to establish a strong international investor base and continuous active outreach to attract IPO candidates.”

Sharing the outlook for 2015, Dr Ernest Kan commented, “There is still a lot of liquidity in the market and we can continue to expect more foreign assets coming in to capitalise on our promise of a stable and regular return on investments. So we are optimistic, but we are cautiously optimistic because there are still uncertainties on the global front. That said, we can still expect to yield bright spots for industries and sectors given the strong foundation and long-term competitiveness of the Singapore market.”

Press contact:

Marie Li
Deloitte Singapore
Marketing & Communications
+65 6800 3717
meijli@deloitte.com

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