S’pore los­ing IPO home ad­van­tage to Hong Kong

The Star Malaysia - StarBiz - - Foreign News -

SIN­GA­PORE: Hong Kong Sin­ga­pore’s home ad­van­tage.

Four­teen com­pa­nies based in the South­East Asian city have cho­sen to list on their home stock mar­ket this year, com­pared with 13 on the bourse op­er­ated by Hong Kong Ex­changes & Clear­ing Ltd, 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. Led by NetLink NBN Trust, busi­nesses raked in a to­tal of US$2.54bil, the data show.

That com­pares with US$677mil raised in Hong Kong, in­clud­ing from firms such as Razer Inc, one of the year’s hottest tech­nol­ogy IPOs.

Razer chief ex­ec­u­tive of­fi­cer 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$14.9bil, ac­cord­ing to Bloomberg data. Sin­ga­pore had 18 ini­tial share sales that raised US$2.65bil, more than the US$2bil raised in 2016 and 2015 com­bined, the data show. — Bloomberg is erod­ing

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