HE state of corporate finance in Singapore has been rather patchy, public offerings have been pathetic but there’s been plenty of mergers and acquisitions (M&A) activity, especially cross border deals. Another booming segment is the local debt market. We ask the experts what’s ailing IPOs (initial public offerings) and for suggestions on improving the low trading volumes dogging the stock market. We also ask them for 2015 prospects.
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The domestic market in Singapore remains small and local companies are not of enough critical mass to sustain a series of large capital listings and jumbo IPOs.
Although the overall stock market sentiment has been fluctuating due to the challenging global economy, interest in Catalist listings remain positive.
We saw interest returning to the IPO market with IPO proceeds raised in the third quarter exceeding that for the whole of the first half of 2014.
Tan Jeh Wuan
Many South-east Asian clients are pursuing cross-border M&A transactions to diversify and expand their businesses outside of their home markets.
Access to abundant low-cost external liquidity in the current low interest rate climate means that even companies that are less cash-rich are able to fund strategic acquisitions.
Chang Tou Chen
We expect to see more corporations use Singapore as a hub to further their acquisition drive in South-east Asia.
The recent volatility and performance of equity markets and lack of viable alternative investments has benefited fixed income markets.
Tan Kee Phong
From the issuers’ stand point, the stabilisation of the interest rate environment has made it more attractive for them to issue bonds.
Singapore’s success as a private banking hub has been the key driver of the local currency bond market.
Kuan Ern Tan