S’pore losing its home advantage in IPOs to HK

By BLOOMBERG

SINGAPORE • Hong Kong is eroding Singapore’s home advantage.

Fourteen companies based in the South-East Asian city have chosen to list on their home stock market this year, compared to 13 on the bourse operated by Hong Kong Exchanges & Clearing Ltd (HKEx), according to data compiled by Bloomberg.

That’s the biggest Singapore contingent in the North Asian city in at least a decade, the data show.

It’s not all bad news for the Lion City: Singapore Exchange Ltd beats HKEx in funds raised from the initial public offerings (IPOs). Led by NetLink NBN Trust, businesses raked in a total of US$2.54 billion (RM10.44 billion), the data show. That compares to US$677 million raised in Hong Kong, including from firms such as Razer Inc, one of the year’s hottest technology IPOs.

Razer CEO Tan Min-liang said in a Bloomberg Television interview earlier this month that Hong Kong was “the perfect location” for the firm to access capital.

The companies that went to Hong Kong had a patchy post-IPO showing. Five stocks suffered double-digit tumbles of as much as 42%, the data show. Singapore saw three of its debut stocks fall, with the largest decline at 5.6%.

Hong Kong has seen a total of 138 IPOs this year, raising US$14.9 billion, according to Bloomberg data. Singapore had 18 initial share sales that raised US$2.65 billion, more than the US$2 billion raised in 2016 and 2015 combined, the data show.

RELATED ARTICLES

Wednesday, April 25, 2018

Hong Kong adds dual-class shares

Wednesday, March 14, 2018

HKEX, MSCI said to plan new Asian futures