Despite 2020 being a challenging year due to the COVID-19 global pandemic, it has not prevented some companies from pursuing an initial public offering (IPO) on the SGX.
Earlier this week, Nanofilm became the biggest IPO on the Singapore Exchange (SGX) in 2020 when it raised about $510 million. This puts the company’s market capitalisation at $1.7 billion based on its IPO price of $2.59. It also created a new billionaire in Singapore – Dr Shi Xu, formerly an associate professor at NTU.
In this week’s edition of 4 Stocks This Week, we look at the four biggest IPOs in 2020 on the SGX and find out how these stocks have performed since being listed.
Nanofilm (SGX: MZH)
The latest listing on the SGX, Nanofilm is a manufacturing technology company founded in 1999 by then NTU professor Dr Shi Xu. Nanofilm is involved in providing nanotechnology in materials and nanoproducts for daily lives. It offers a range of services, from material sciences, nano-products, to custom-made industrial equipment.
On its first trading day on 30 October 2020, Nanofilm opened at $2.79, $0.20 above its IPO offering price of $2.59 and closed the day at $2.91. This means investors who have subscribed to its IPO would have enjoyed a paper gain of 12%.
Elite Commercial REIT (GBP) (SGX: MXNU)
Elite Commercial is a real estate investment trust (REIT) that invests in commercial assets in the UK. The company, which was listed on 6 February 2020 on the SGX, raised GBP130.9 million at an IPO offering price of GBP0.68 – giving it a market capitalisation of GBP225.9 million as of its IPO date.
A week ago, Elite Commercial announced that it intends to acquire 58 properties across the UK for a sum of GBP212.5 million. This marks its first acquisition since its listing on SGX. The company is currently trading at 0.63, down 7% from its IPO price.
United Hampshire REIT (USD) (SGX: ODBU)
United Hampshire is a REIT that invests in a diversified portfolio of stabilised income-producing grocery-anchored and necessity-based retail properties and modern, climate-controlled self-storage facilities located in the U.S.
The company, which was listed on 12 March 2020 on the SGX, raised USD325.59 million at an IPO offering price of USD0.80 – giving it a market capitalisation of USD394.6 million based on its IPO offering price.
The company is currently trading at 0.565, down about 30% from its IPO price.
Southern Alliance (SGX: QNS)
Southern Alliance is a Malaysia-based iron-ore mining company. It was listed on the Singapore Exchange Catalist on 26 June 2020 at an IPO offering price of $0.25 – giving it a market capitalisation of $122.25 million based on its IPO price. The company ended its first trading day at $0.27.
As of 30 October 2020, the company is currently trading at $0.285, up about 14% as compared to its IPO offering price.
As you can see, subscribing to an IPO does not guarantee you profits upon the company being listed. Investors should do their due diligence on the kind of companies that they wish to invest.
If you are keen to find out the performance of all the IPOs in 2020 on the SGX, as well as in past years, you can refer to this IPO listing page on the SGX.
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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.