Fewer IPOs But Higher Proceeds For Singapore In 2019 (Singapore Business Review)

Singapore was a small dot amidst a bleak global landscape for initial public offerings (IPO) in 2019, as total proceeds rose over fourfold to $3.13b from 2018’s $730m. The number of IPOs dipped to 11 from 15 in the previous year, according to PwC Singapore.

Four REITs continued to support the majority of IPO activity and contributed a whopping 98.1% ($3.07b) to the total proceeds raised during the year. To date, REITs have contributed 87% of total IPO funds raised over the past five years.

Three newly-listed REITs had portfolios comprising assets mainly located in the US: ARA US Hospitality Trust has 38 upscale hotels; Eagle Hospitality Trust has 18 hotels; and Prime US REIT focuses on office buildings in the country.

Majority of the new listings were winners in terms of performance. In terms of first-day closing performance, seven out of the 11 IPOs closed above IPO price whilst three went below, showing similar results to 2018. According to PwC, these companies have reported positive earnings results despite the macroeconomic challenges.

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