Singapore IPO Market for 2017
Since the start of the year, there have been 19 Initial Public Offerings (IPOs) on the Singapore Exchange (SGX). Together, these IPOs have raised a total of S$4.6 billion, which is double of the S$2.3 billion raised by 16 IPOs in the whole of 2016.
This is a positive sign and a reversal from the trend observed last year where the value of delistings exceeded the value of new floats on SGX. Of the 19 IPOs so far this year, seven were listings on the Mainboard and 12 were Catalist listings.
The seven Mainboard stocks have averaged a 6% price gain from IPO prices. The average price gain of the Catalist stocks of 68% from initial offer prices is skewed by the outlier performance of stocks like Samurai 2k Aerosol (which gained 470%), UnUsUaL (which gained 278%) and Kimly (which gained 42%). Looking at the median gain of the 12 Catalist companies, it was an increase of 7% from IPO prices.
This past two weeks have seen four of the 19 IPOs on SGX. We will take a closer look at them in this episode of 4 Stocks This Week.
RE&S HOLDINGS LIMITED (SGX: 1G1)
Established in 1988, RE&S Holdings Limited and its subsidiaries aim to provide customers with authentic Japanese cuisine and dining experiences through ownership of 20 food and beverage brands and operating a network of 77 outlets in Singapore and Malaysia.
They are behind 20 familiar brands, including Ichiban Sushi, Ichiban Boshi, Kuriya Dining, Kuishin Bo, Men-Ichi, Wadori, and the Shokutsu Ten food street.
They listed on SGX on 22 November 2017 with an offer price $0.22. It closed on the first day $0.31, which is a 41% premium. The IPO raised S$11.9 million and saw an oversubscription level of more than193 times. RE&S Holdings Limited closed this week on 1 December at $0.26.
According to RE&S Holdings, the listing will provide capital for continued expansion and enhance their corporate profile to take advantage of greater opportunities as they continue to deliver authentic Japanese cuisine and novel dining experiences to customers.
MindChamps PreSchool Limited (SGX: CNE)
MindChamps’ IPO marks the first time an early childhood educator provider listed on SGX.
Founded in 2008, MindChamps PreSchool Limited owns, operates, and franchises infant care centres, preschools, enrichment centres, as well as theatre-related enrichment programs for children.
In total, MindChamps operates 10 educational centres in Singapore and Australia, and an additional 44 centres in Singapore, Australia, the Philippines, and the United Arab Emirates that are owned and operated by franchisees.
MindChamps also offer training programs for adults at the certificate and diploma levels in early childhood care and education; and operates commercial schools offering higher education programs.
Their listing on 24 November 2017 raised $49.3 million, which will provide MindChamps with financial foundation to further expand the MindChamps concept globally. The offer price was set at $0.83, with a first day close of $0.92. It closed this week at $0.89.
No Signboard Holdings Ltd. (SGX: 1G6)
From modest beginnings as a seafood hawker stall, No Signboard Holdings has grown to become a widely-recognised and respected food and beverage company in Singapore.
In addition to operating a chain of seafood restaurants under its No Signboard Seafood brand, the company today has a beer business that distributes its in-house Draft Denmark brand of beer, as well as a ready-meal arm which offers meals through a network of vending machines across Singapore.
No Signboard Holdings Ltd. debuted on SGX on 30 November 2017, at an offer price of $0.28 per share. It raised $35 million and closed at $0.29 on its first day. It closed this week ending 1 December 2017 at $0.295.
Cromwell European Real Estate Investment Trust (SGX: CNNU)
The Cromwell European Real Estate Investment Trust (CEREIT) is the first Singapore REIT that offers investors exposure to a diversified Pan-European portfolio, currently consisting of 74 properties located in or around major cities in Denmark, France, Germany, Italy, as well as the Netherlands. These properties are mainly office, light industrial, logistics and retail assets.
Listing on the Mainboard on 30 November 2017, CEREIT is also first Euro-denominated SGX listing. It closed flat at €0.55 on its debut.
With a market capitalisation of about €866 million (S$1.4 billion), the listing of CEREIT brings the total number of S-REITs and property trusts to 43, with a combined market capitalisation of about S$88 billion.
These four new listings on SGX over the past two weeks brought the total market capitalisation of 2017 IPOs to $8.3 billion, a marked increase compared to $4.4 billion in the whole of 2016.
Here’s to new beginnings and a strong finish to 2017!
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