Upcoming Development Plans to Ensure Dynamic Singapore Initial Public Offering Market
Prime Minister's OfficeSpeakers
Summary
This question concerns development plans for a dynamic Singapore Initial Public Offering (IPO) market, raised by MP Shawn Huang Wei Zhong in response to declining listing volumes. Senior Minister Tharman Shanmugaratnam noted that while global IPO proceeds have dropped significantly, Singapore has implemented key initiatives such as a $1.5 billion fund by the Government and Temasek to support high-growth enterprises. He highlighted the EDBi growth IPO fund for late-stage enterprises, enhanced Monetary Authority of Singapore grants to defray listing costs, and the introduction of the Special Purpose Acquisition Companies framework. These measures aim to increase market attractiveness and develop the equity research ecosystem for local and international investors. Senior Minister Tharman Shanmugaratnam concluded that the government will allow these existing initiatives time to bear fruit before considering further measures.
Transcript
1 Mr Shawn Huang Wei Zhong asked the Prime Minister in view of Singapore listings having declined more than half from last year compared to the region, what are the upcoming development plans to ensure a dynamic Singapore Initial Public Offering market to keep pace with the investment momentum of the region.
Mr Tharman Shanmugaratnam (for the Prime Minister): Initial Public Offering (IPO) volumes globally have fallen this year. The number of IPOs globally has fallen by 44%, and proceeds by 57%, in the first nine months of 2022 compared to the same period in 20211. SGX has seen nine listings to date, broadly similar to 2021 where we saw eight listings for the full year. But IPO proceeds from SGX listings fell, broadly in line with global trends.
The Monetary Authority of Singapore (MAS) has shared in past sittings the initiatives that SGX and government agencies have implemented to increase the attractiveness of our equities market for local and international investors. Key initiatives include a $1.5 billion fund put together by the Government and Temasek to invest in the public listings of promising high-growth enterprises on SGX; a growth IPO fund by EDBi to support late-stage private enterprises to grow and prepare for an eventual public listing in Singapore; and an enhanced MAS grant scheme to defray the costs of a public listing on SGX, and to develop Singapore's equity research ecosystem.
SGX has introduced new listing options to cater to new economy companies, such as the Special Purpose Acquisition Companies (SPAC) framework. Details can be found in previous Parliamentary replies2 [Please refer to: (a) "Volume of Trade Turnover on Singapore Exchange and Measures to Make Trades on Singapore Exchange More Attractive to Foreign Investors", Official Report, 1 November 2021, Vol 95, Issue 41; (b) "Local Companies that List Outside of Singapore", Official Report, 6 January 2020, Vol 94, Issue 115; and (c) "Upgrading Plans for Local Equities and Equity Derivatives Market", Official Report, 04 November 2019, Vol 94, Issue 113.] and MAS' media release on "Boosting Equity Financing for High-Growth Enterprises"3.
These recent initiatives are significant. We should give them time to bear fruit and re-evaluate the situation before considering yet more new measures.