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How Much Would Singapore Investors Have Earned If They Invested $1,000 In Every IPO On The SGX In 2020?

Better than the STI this year


2020 has been a notable year for traders and investors. The global markets crashed in March 2020 due to COVID-19 and subsequently recovered phenomenally. The Singapore Exchange (SGX) also reported that there has been more interest in trading and stock investing among Singaporeans this year due to the pandemic.

Amidst this stock market volatility, 10 new companies were listed on the SGX. Investors have shown a strong interest in new stock listings, with the latest Initial Public Offering (IPO) by Credit Bureau Asia being 60 times oversubscribed. The 2020 IPO listings also differ from previous years with two (three once G.H.Y Culture is listed) mainboard IPOs that are not Real Estate Investment Trusts (REITs).

With 2020 being such a challenging year, perhaps you may be wondering how well these 10 companies have done since being listed on the SGX. We investigate the returns thus far of these 10 IPOs and compute how much you would have earned if you have theoretically invested $1,000 in each IPO offered on the SGX in 2020.

Note: This is a theoretical computation and excludes the possible fees incurred if you have actually invested in these IPOs. Additionally, even if you have wanted to invest in every IPO, you may not be successfully allocated $1,000 worth of shares in each IPO exercise.

Read Also: Step-By-Step Guide To Subscribing To An IPO (Through Internet Banking)

If You Have Successfully Invested $1,000 In Every SGX IPO In 2020

With 10 IPOs to date, you would have invested capital of $10,000 in IPOs this year. This would have yielded you a return of $977 or 9.77% return on capital, excluding fees and charges. 2 of the 10 companies yield negative returns; both of which are mainboard REITs. This is in line with the overall negative market sentiment regarding REITs especially retail REITs which is the focus of United Hampshire US REIT, the worst performer of this years’ IPOs. In contrast, Nanofilm Technologies, which is a technology-focused IPO, was the best performer, echoing the overall market bullish sentiment on technology stocks.

If you are pickier about the IPOs and only choose to invest in mainboard listing, there were only 4 (and one yet to be listed) companies listed. Investing in only mainboard listings would require a capital of $4,000 and yield a return of $243.52 or 6% return on capital. The fifth company, G.H.Y Culture is currently open to the public and the IPO will end on 16 December 2020.

In comparison, if you have put the same amount of money into an STI ETF (SGX: ES3) at the start of the year, your return to date would be -8.48%.

However, the actual returns are likely to be lower once you deduct away the fees incurred in participating in the IPO. Additionally, with 3 of the 4 mainboard listings being oversubscribed, you may not be able to invest in these IPOs even if you wanted to.

Read Also: SPDR STI ETF VS Nikko AM Singapore STI ETF: What’s The Difference Between These 2 Straits Times Index ETFs Listed On The SGX?

Catalist And Mainboard

# Company IPO Price Current Price Unit Boughts With $1,000 Return To Date
1 Resources Global Development Limited $0.20 $0.22 5000 10% ($100)
2 Elite Commercial REIT £0.68 £0.665 826 -2% (-$14.57)^
3 Don Agro International Limited $0.22 $0.30 4545 36% ($363.50)
4 Memiontec Holdings Ltd $0.225 $0.225 4444 0% ($0.00)
5 United Hampshire US REIT US$0.80 US$0.57 892 -29% ($321.23)^
6 Southern Alliance Mining Ltd $0.25 $0.305 4000 22% ($220.00)
7 Singapore Paincare Holdings Limited $0.22 $0.22 4545 0% ($0.00)
8 Nanofilm Technologies International Limited $2.59 $3.90 386 51% ($505.40)
9 Credit Bureau Asia Limited $0.93 $0.999 1075 7% ($73.93)
10 Aedge Group Limited $0.20 $0.21 5000 5% ($50.00)

^return computed is after conversion from foreign currency to Singapore dollar. Source: SGX

Mainboard

# Company IPO Price Current Price Unit Boughts With $1,000 Return To Date
2 Elite Commercial REIT £0.68 £0.665 826 -2% (-$14.57)^
5 United Hampshire US REIT US$0.80 US$0.57 892 -29% ($321.23)^
8 Nanofilm Technologies International Limited $2.59 $3.90 386 51% ($505.40)
9 Credit Bureau Asia Limited $0.93 $0.999 1075 7% ($73.93)

^return computed is after conversion from foreign currency to Singapore dollar. Source: SGX

11 Companies Listed On The SGX In 2020

Here is a brief run-down of all the 11 IPOs listed on the SGX in 2020.

#11 G.H.Y Culture & Media Holding

Date Listed: not yet listed

Upon successful listing, G.H.Y will be the third non-Reit (real estate investment trust) listing on the mainboard this year – a turnaround from 2019, when there were no non-REIT listing. G.H.Y is an entertainment company that produces and promotes dramas, films and concerts in the Asia-Pacific region. It also engages in talent management and make-up services, as well as the provision of costumes and props. Its IPO offering is priced at $0.66 and the first day of trading will be on 18 December 2020.

#10 Aedge Group Limited

Date Listed: 14 December 2020 on the Catalist

Aedge Group is Singapore-based multi-services provider that covers three core areas: engineering services, transport services, and security and manpower. They also provide workforce solutions for different manpower needs. The IPO offering was priced at $0.20 and opened at $0.21 on the first day of trading.

#9 Credit Bureau Asia Limited (SGX: TCU)

Date Listed: 03 December 2020 on the Mainboard

A credit- and risk-information solutions provider, Credit Bureau Asia was the second non-REIT Mainboard listing of 2020. Similar to Nanofilm, it was massively oversubscribed (to the tune of 60.8 times) by retail investors who were attracted to its strong dividend return. The IPO offering was priced at $0.93 and opened at $1.15 on the first day of trading.

Read Also: Credit Bureau Asia IPO: 8 Things You Should Know Before Investing

#8 Nanofilm Technologies International Limited (SGX: MZH)

Date Listed: 30 October 2020 on the Mainboard

The first non-REIT Mainboard listing of 2020, Nanofilm Technologies was massively oversubscribed (30.6 times) by retail investors. A long-awaited technology listing to the SGX Mainboard, Nanofilm Technologies is a manufacturing technology company, providing nanotechnology solutions to a range of industries. The IPO offering was priced at $2.59 and opened at $2.77 on the first day of trading.

Read Also: 4 Stocks This Week (IPOs In 2020) [30 Oct 2020] Nanofilm (SGX: MZH); Elite Commercial (SGX: MXNU); United Hampshire (SGX: ODBU); Southern Alliance (SGX: QNS)

#7 Singapore Paincare Holdings Limited (SGX: FRQ)

Date Listed: 30 July 2020 on the Catalist

Singapore Paincare Holdings comprises a group of clinics providing medical services, focusing on accessible pain care treatment in Singapore. The IPO offering was priced at $0.22 and opened at $0.22 on the first day of trading.

#6 Southern Alliance Mining Ltd (SGX: QNS)

Date Listed: 26 June 2020 on the Catalist

Southern Alliance Mining Ltd is a Malaysian iron ore producer operating the Chaah Mine. They have also secured rights to exploration and mining operations at 3 potential iron ore sites in Johor, Malaysia. The IPO offering was priced at $0.25 and opened at $0.26 on its first day of trading.

#5 United Hampshire US REIT (SGX: ODBU)

Date Listed: 12 March 2020 on the Mainboard

The second Mainboard listing for 2020, United Hampshire US REIT focuses on grocery-anchored and self storage real estate in US. This is first US retail-focused REIT listed on the SGX. The IPO offering was priced at US$0.80, or S$1.12 and opened at US$0.72 on its first day of trading.

#4 Memiontec Holdings Ltd (SGX: SYM)

Date Listed: 05 March 2020 on the Catalist

While Memiontec Holdings Ltd was publicly listed on the SGX Catalist, there was no public offering of the placement shares. Thus, even if you wanted to, you would not have been able to invest in this water treatment company during IPO. For the purposes of this exercise, we assume that you bought the $1,000 worth of shares when the shares were first available for public trading which was at the same IPO price of $0.225.

Read Also: 4 Stocks This Week (Recent IPOs) [17 July 2020] Southern Alliance Mining; United Hampshire US REIT; Memiontec; AMTD

#3 Don Agro International Limited (SGX: GRQ)

Date Listed: 14 February 2020 on the Catalist

An unexpected commodities addition to SGX Catalist, Don Agro International Limited is one of the largest agricultural companies based in Russia. The IPO offering was priced at $0.22 and opened at $0.25.

#2 Elite Commercial REIT (SGX: MXNU)

Date Listed: 6 February 2020 on the Mainboard

The first Mainboard listing of 2020 and a REIT, Elite Commercial REIT gained quite a lot of attention during its IPO. A UK-focused REIT with 99% of its portfolio leased to the UK government, Elite Commercial REIT was 8.3 times oversubscribed by retail investors looking for stable dividend income. It is also the first pound-denominated REIT on the SGX. The IPO was offered at £0.68 or S$1.21 and opened at £0.705 on its first day of trading.

Read Also: Elite Commercial REIT: 10 Things You Need To Know About Before Investing

#1 Resources Global Development Limited (SGX: QSD)

Date Listed: 31 January 2020 on the Catalist

An Indonesian coal trader and coal shipping company, Resources Global Development Limited’s IPO was offered at $0.20. The company stock price opened at $0.21 on its first day of trading.

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