SGX Market Updates

SGX 2017’s IPO Fund Raisings Have Doubled 2016 Levels


PUBLISHED ON |

01 December 2017

  • Over the first 11 months of 2017, there have been 23 new listings on SGX, including 19 IPOs, three RTOs and one GDR. Funds raised by the 19 IPOs totalled S$4.6 billion – double the S$2.3 billion in fund raisings in 2016.

  • The 19 IPOs consisted of seven Mainboard listings and 12 Catalist listings. The seven Mainboard offerings have averaged a 6% price gain from initial offer prices, whilst the 12 Catalist stocks averaged a 68% gain from initial offer prices.

  • The average return of the 12 Catalist stocks includes outlier performances of Samurai 2K Aerosol and UnUsUaL. The median gain of the 12 stocks was 7%. The most recent addition to the Catalist Board, was No Signboard Holdings which closed 4% above its offer price.




The Straits Times Index (STI) added 1.8% for the month of November bringing its year-to-date dividend inclusive return to 23%, compared to an SGD denominated average returns of 18% for the benchmarks of Australia, Hong Kong and Japan.

During November, the Ministry of Trade and Industry (MTI) reported that Singapore's economy grew 5.2% YoY for the September 2017 quarter, the highest growth rate since the December 2013 quarter. Manufacturing was a key driver of this growth, and has continued to expand locally and internationally throughout the year as exemplified through Purchasing Managers Indices (PMI). The JP Morgan Global Manufacturing PMI™ for the month of October was 53.5, a six-and-a-half year high, with US manufacturing business conditions improving at the quickest pace since January. In Singapore, the PMI for October, at 52.6, represented its highest level since December 2009.

In addition, November saw five IPOs that made their debut on SGX. These included Keppel-KBS US REIT, Mindchamps Preschool and Cromwell European REIT on the Mainboard, and RE&S Holdings and No Signboard Holdings on Catalist.



IPOs in 2017 YTD

With one month left to go for 2017, the year has so far brought 19 Initial Public Offerings (IPOs) of which seven were listed on the Mainboard and 12 listed on Catalist. The total funds raised of the 19 IPOs over the first 11 months came to S$4.6 billion, effectively doubling the S$2.3 billion in IPO funds raised for the entire 2016.

The market capitalisation of the 19 stocks on debut is also significantly higher, totalling S$8.3 billion, compared to S$4.4 billion in 2016. In total there were 16 IPOs last year, not including the secondary listing of Top Glove Corporation Berhad and Reverse Takeovers (RTO) of China Star Food Group and Golden Energy & Resources and one Global Depository Receipt (GDR).



IPO Market Capitalisation (S$M)



Source: SGX (Data as of 29 November 2017).



The 19 IPOs span a number of Sectors and Industries which include Advertising, Construction & Engineering, Chemicals, Education Services, Gas Utilities, Health Care Services, HR & Employment Services, Internet & Direct Marketing Retail, Movies & Entertainment, Office REITs, Real Estate, Restaurants and Telecommunications.



IPO Performance

Of the 19 IPOs in 2017, the three best performers from their offer price were Samurai 2k Aerosol (+470%), UnUsUaL (+278%) and Kimly (+42%). All three of the stocks were listed on the Catalist board, which provides investors access to smaller-sized, yet potentially fast-growing companies. To read a Market Update about the Catalist stocks with the highest market capitalisation growth, click here.

UnUsUaL listed in April 2017, with an offer price of 20 cents per share. Please note that the UnUsUaL bonus issue of three stocks for five stocks went ex-bonus today. This means that the stock, which closed yesterday at 75.5 cents, opened this morning at 50.5 cents.

The 19 IPOs are tabled below, sorted by market capitalisation. These 19 stocks have averaged a +45% price change since they were listed. The seven Mainboard offerings have averaged a 6% price gain from initial offer prices, whilst the 12 Catalist stocks averaged a 68% gain from initial offer prices. The median gain of the 12 Catalist stocks was 7%. To see more details on each stock in the table below click on the stock name in SGX StockFacts.


Name SGX
Code
Funds Raised
S$M
Market Cap
S$M
IPO Offer
Price*
Last
Price*
IPO To Date
Price Change*
%
Netlink NBN Trust CJLU 2,447 3,196 0.810 0.820 1.2
Cromwell European REIT (EUR) CNNU 889 1,395 0.550 0.555 1.4
HRnetGroup CHZ 184 860 0.900 0.850 -5.6
Keppel-KBS US REIT (USD) CMOU 609 764 0.880 0.900 1.3
UnUsUaL 1D1 19 486 0.200 0.755** 277.5
Dasin Retail Trust CEDU 154 456 0.800 0.830 3.7
Kimly 1D0 43 411 0.250 0.355 42.0
APAC Realty CLN 65 313 0.660 0.880 33.3
World Class Global 1E6 38 229 0.260 0.250 -3.8
Mindchamps Preschool CNE 49 213 0.830 0.880 6.0
Aspen Group Hldgs 1F3 40 178 0.230 0.205 -10.9
No Signboard Hldgs 1G6 35 134 0.280 0.290 3.6
Samurai 2K Aerosol 1C3 4 125 0.200 1.140 470.0
RE&S Hldgs 1G1 12 90 0.220 0.255 15.9
Aoxin Q & M Dental Group 1D4 11 78 0.200 0.210 5.0
Sanli Environment 1E3 12 73 0.225 0.270 20.0
Union Gas Hldgs 1F2 15 48 0.250 0.240 -4.0
Y Ventures Group 1F1 8 48 0.220 0.240 9.1
shopper360 1F0 11 30 0.290 0.260 -10.3
Average 45.0
Median 3.7

* Market Capitalisation and Price Changes are in SGD terms, prices shown are in respective trading currency.
** Please note that the UnUsUaL bonus issue of three stocks for five stocks went ex-bonus on 1 December 2017. This means that the stock, which closed yesterday at 75.5 cents, opened this morning at 50.5 cents.
Source: Bloomberg & SGX StockFacts (Data as of 30 November 2017).



Aside from the 19 IPOs this year, Chi Mei Materials Tech GDR listed in September raising US$64.913 million. In addition were three RTOs - Pacific Star Development (1C5), Hatten Land (PH0) and Capital World (1D5). The three RTOs raised more than S$60 million and their combined market capitalisation at listing came to S$765 million. There are currently two on-going RTOs now – 

  • RTO of Changjiang Fertilizer Holdings Limited by WBH and CT8; and
  • RTO of Catalist-listed SHC Capital Asia Limited by MM Myanmar Pte Ltd.

Together, the GDR and three RTOs have brought the total number of new listings in the 2017 year to date on SGX to 23.



Catalist Board Recently Celebrated its 10 year Anniversary

The SGX board Catalist was launched in November 2007 with a vision to provide high-growth companies access to growth capital more efficiently and faster time-to-market. The sponsor-supervised regime with no prescribed quantitative criteria has enabled companies at varying stages of growth and sizes to tap the capital market to propel to the next growth stage.

As noted in Catalist offer documents, companies listed on Catalist may carry higher investment risk when compared with larger or more established companies listed on the Mainboard. Furthermore, companies may list on Catalist without a track record of profitability and there is no assurance that there will be a liquid market in the shares or units of shares traded on Catalist. These offer documents point out that investors should be aware of the risks of investing in such companies and should make the decision to invest only after careful consideration and, if appropriate, consultation with professional advisers.

The quotation, trading and settlement processes of a stock listed on Catalist are identical to that of a stock listed on the Mainboard. Participation in Catalist stocks over the past few years has positioned Catalist as the most liquid platform among comparable growth platforms across the world.




Did you Know?

SGX has two listing platforms: the Mainboard – for established businesses; and Catalist for potentially fast-growing companies. There is no quantitative entry criteria required by SGX for Catalist stocks, and businesses seeking a primary listing on Catalist must be brought to list by approved Sponsors. To help facilitate the growth of the business, Catalist provides a greater scope for secondary fund raisings and easier acquisitions.







This article is provided by SGX My Gateway.



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