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Singapore government, SGX announce measures to boost stock market

An escalator previous an digital display and ticker board on the Singapore Trade.

Lee Yen Nee | CNBC

SINGAPORE — The Singapore authorities on Friday introduced a collection of initiatives to lure “promising high-growth” corporations from across the area to record on the native inventory market.

Singapore is a popular itemizing vacation spot for REITs, or actual property funding trusts. However the city-state has struggled to draw blockbuster preliminary public choices from the tech sector, which has been one of many high funding themes in world markets.

“We did have know-how corporations that got here by way of absolutely, similar to Nanofilm. We clearly wish to see extra of them,” Loh Boon Chye, chief govt of the Singapore Trade, instructed CNBC in an unique interview.

Nanofilm Applied sciences Worldwide, which gives protecting coating supplies for smartphones and televisions, made its buying and selling debut on the SGX final 12 months. It was the primary main non-REIT IPO in years.

New initiatives

Singapore’s authorities introduced Friday it can co-invest with state investment firm Temasek in a brand new fund to assist corporations elevate capital by way of public listings — whether or not major, secondary or twin — within the city-state.

The fund will begin with a primary tranche of 1.5 billion Singapore {dollars} ($1.1 billion).

Listed here are different initiatives that have been introduced:

  • The funding arm of Singapore’s Financial Growth Board intends to determine a brand new fund to spend money on later-stage corporations and work towards an eventual itemizing within the city-state. The fund will begin with as much as 500 million Singapore {dollars}.
  • The monetary regulator, Financial Authority of Singapore, will enhance its grants to assist corporations defray the price of listings.
  • The change operator, Singapore Exchange, will assist high-growth corporations to lift funds privately previous to a public itemizing.   

“We all know that the initiatives we’re launching at this time are not any magic bullet,” Singapore’s Minister for Commerce and Trade Gan Kim Yong stated in a speech saying the measures.

“However we consider they may blow new wind into the sails of our public fairness market, and make SGX not only a viable however a compelling possibility for revolutionary progress corporations looking for a public itemizing,” he added.

The minister stated 4 native start-ups achieved the standing as “unicorns” this 12 months after being valued at $1 billion or extra. The most recent of the 4 is online marketplace start-up Carousell.

These corporations and others throughout Asia in high-growth sectors will “come of age” and should search to record on public markets within the coming years, stated Gan. So, “we should always attempt to anchor these corporations in Singapore,” he added.

SPAC listings

Singapore’s inventory market has outperformed lots of its regional friends this 12 months, with the benchmark Straits Times Index gaining round 7.8% as of Thursday’s shut.

However preliminary public choices on the Singapore Trade have been lackluster as compared. Within the first half of this 12 months, Singapore drew simply three IPOs that raised $200 million in proceeds, whereas fellow monetary hub Hong Kong had 46 listings that raised $27.4 billion.

— CNBC’s Weizhen Tan contributed to this report.

Correction: This text has been up to date to mirror that the SGX CEO stated the primary SPAC submission, not itemizing, could possibly be accomplished in a few weeks.

https://www.cnbc.com/2021/09/17/singapore-government-sgx-announce-measures-to-boost-stock-market.html | Singapore authorities, SGX announce measures to spice up inventory market

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