While delistings on stock markets is routine and doesn’t necessarily bode disaster, its not hard to imagine that SGX would like to reduce the scale of delistings on the Singapore market, and counteract with new listings.
Delistings have outpaced listings on SGX in five of the past eight years. In 2017, there were a total of 29 delistings from SGX, contrasted by 20 new listings.
Part of SGX’s strategy to grow the local equities market is to pursue the Technology sector by making it a more attractive place for technology companies to list. Last year, SGX began floating a proposal to allow dual-class shares, which is a structure that is quite fashionable in Silicon Valley and has been growing in popularity elsewhere.
In this instalment of 4 Stocks This Week, we will look at four new listings on SGX this year and check-in to see how they are doing.
Memories Group Limited (SGX: 1H4)
Memories Group Limited engages in tourism-related activities in Myanmar through three segments: Experiences, Services, and Hotels. The Experiences segment operates commercial hot air balloon flights in Bagan and Inle Lake regions under the Balloons Over Bagan brand, which is an iconic tourist attractions in Myanmar.
Its Services segment engages in the design and implementation of customised tours, events, and travel logistics for travel agents and individuals through its Asia Holidays Travel & Tours brand, and others.
Their Hotels segment currently consists of a 19-room luxury boutique hotel located at the foothill of Mount Zwekabin, with another 46-room urban resort within Pun Hlaing Estate under construction.
Memories Group became publicly listed after executing a reverse takeover of SHC Capital Asia Limited and doing a compliance placement of 50 million new shares on January 3 at $0.25 per share. This was done to fulfil listing rules that require at least 15% of the shares are held in the hands of at least 200 shareholders.
On its first day of trading on 5 January 2018, the counter surged almost 30% to close at $0.37. It closed this week at $0.23.
Earlier in March, Memories Group made its first post-listing acquisition with the S$1.3 million purchase of luxury yacht company Burma Boating.
LY Corporation Limited (SGX: 1H8)
LY Corporation Limited, an investment holding company, designs, manufactures, and sells wooden bedroom furniture primarily in Malaysia.
Started in 1976, it has since grown to become one of Malaysia’s leading original equipment manufacturer and exporter of wooden bedroom furniture with more than 1,000 employees. As of 15 Dec 2017, the company operates 15 factories and warehouses. The company exports its products to the United States, the Middle East, the Asia Pacific regions, and the rest of the world.
With a 72% stake in the company, the founding family continues to have majority interest in LY Corporation, which closed at $0.30 this week. The stock’s highest price so far was $0.37.
Sasseur Reit (SGX: CRPU)
The Sasseur Reit IPO was the subject of much discussion among Singapore investors. It is notable for multiple reasons: It is the first outlet mall REIT to be listed in Asia; it is the first REIT IPO for 2018; And it is also the largest IPO for 2018 thus far.
Sasseur Reit offers investors exposure to Chinese retail outlet mall sector, with an initial portfolio of four malls in Chongqing, Bishan, Hefei and Kunming. Prior to listing, Sasseur Reit secured $182.8 million from 12 cornerstone investors including Credit Suisse AG, DBS Bank, and a subsidiary of Chinese e-commerce giant JD.com and CKK Holdings, which owns Charles and Keith.
With a market cap of about $944.2 million, the listing of Sasseur Reit brings the total number of REITs and property trusts listed on SGX to 43, with a combined market capitalisation of over $93 billion.
The Sasseur REIT IPO was oversubscribed 3.7 times and raised $396 million in gross proceeds. It closed at $0.80 this week.
Ayondo Ltd (SGX: 1I5)
Headquartered in Europe, Ayondo provides trading and investment solutions through its online platforms. The company has operations in the United Kingdom, Germany, Spain, Switzerland and Singapore. Founded in 2008, its largest shareholder since 2014 has been Singapore private equity investor Luminor Capital.
Ayondo offers contract for differences (CFD) and spread bet trading across various markets and financial products including forex, treasuries, cryptocurrencies and shares to both business-to-consumer (B2C) and business-to-business (B2B) clients through its proprietary WeTrade and TradeHub platforms. Ayondo also provides educational and casual trading services through mobile applications.
Ayondo’s listing was oversubscribed 4.5 times, and marks the first pure-play FinTech company to debut on SGX.
According to listing documents, Ayondo is currently loss-making, but the company expects the trust and credibility that listing on SGX brings will make it easier for them to find partners as they expand their international reach.
After closing flat on its opening day at $0.26, it closed this week at $0.21.
4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.
SingSaver - Battle Of The Cards. Apply for your favourite miles, cashback and rewards card today!
From now till 9 June, you can participate in SingSaver’s Battle of Cards campaign. To participate, all you need to do is to apply (via SingSaver) for any of these credit cards during this period (you can apply for more than one).
Battle Of Cards (Best Miles Cards)
Citi PremierMiles Visa Card: $200 NTUC Voucher/Grab Code (new customers only) or $30 vouchers (existing customers)
UOB PRVI Miles Visa Card: $50 cash gift (new customers and existing customers)
Standard Chartered Visa Infinite: $100 cash gift (new customers only) or $50 cash gift (existing customers)