Deloitte: Singapore shares domestic IPO forecast

By Rob Starr, Content Manager, Big4.com

Deloitte predicts 20 to 30 listings for the Singapore initial public offerings (IPOs) market in 2013. While the number of foreign listings has receded in the last two years, homegrown listings have accelerated to dominate a larger proportion of the Singapore IPO market post global crisis.

Companies in the healthcare, construction and agriculture sectors are taking a more global view of the markets and have been seen actively pursuing listing opportunities in Singapore. The city’s reputation as the preferred destination for listings has also attracted a number of business trusts and REITs, such as Ascendas Hospitality Trust, Far East Hospitality Trust and Religare Health Trust to be listed on the Singapore Exchange (SGX), collectively raising over S$1.2 billion of funds in 2012. Consumer business sectors comprising agriculture, hospitality and retail continue to top the number of IPO ranking for both 2011 at 40 per cent and 2012 at 32 per cent.

Of the 19 new share listings (11 Mainboard and 8 Catalist) this year, Deloitte acted as the reporting accountants for the most number of IPOs (26%) excluding business trust and real-estate investment trust (REITs). These new share listings collectively raised S$3.28 billion proceeds, resulting in a 230 per cent year-on-year increase due to the large IPO of IHH Healthcare which contributed to 76 per cent of the total proceeds. In 2011, there were 20 new share listings (9 Mainboard and 11 Catalist) with proceeds totaling S$0.99 billion.