We’re into the final weeks of 2018 and looking back, the Singapore Exchange (SGX) saw a listing of 14 Initial Public Offerings (IPOs). These IPOs collectively raised a total of $722.5 million, which is significantly lower than $4.6 billion raised from 20 IPOs in full year of 2017.
Perhaps some of SGX’s initiatives, such as the widely-discussed dual-class shares, may give the local exchange a boost in 2019.
This instalment of 4 Stocks This Week examines the 4 most recent IPOs listed on the SGX and how they fared since.
Medinex Limited (SGX: OTX)
Founded in 2009, Medinex Limited is a Singapore-based one-stop provider of medical support and consultancy services. They help clients oversee the setting up of clinics and facilitate applications for relevant clinic licences. In addition, they also provide business support services such as accounting, tax agent services and human resource management.
With a rapidly ageing population, the demand for medical services should increase. This could lead to a corresponding rise in the number of registered medical practitioners to fulfils such demands. This present the company with a lot of opportunities to grow.
Medinex Limited listed Catalist this week (on 8 December 2018), which makes it the most recent entrant on SGX. The placement tranche was fully subscribed, though there was no public tranche for this IPO, which raised a gross total of $7.5 million.
Medinex’s shares closed on the first day at $0.28, up from its offer price of $0.25.
MeGroup Ltd. (SGX: SJY)
MeGroup Ltd is involved in the manufacturing of noise, vibration and harshness (NVH) components and other non-NVH components primarily for the automotive industry in Malaysia. They also own and operates several automobile dealerships for the sale of new automobiles in various parts of Malaysia.
The group operates two plants in Malaysia and supplies components to Honda, Mazda, Proton and Perodua. Their dealership principals are Honda, Mazda, and Peugeot.
Part of their strategies and future plans are to increase its manufacturing capability and cost efficiency by investing in new technologies while upgrading its machinery and equipment to increase productivity. They also hope to diversify their manufacturing into other NVH and non-NVH components businesses.
MeGroup listed on SGX on 31 October 2018 with an offer price of $0.23. The IPO saw an oversubscription of 1.31 times and raised a total amount of $3.795 million. MeGroup closed this week on 7 December 2018 at $0.20.
Read Also: Step-By-Step Guide To Subscribing To An IPO (Through Internet Banking)
Vividthree Holdings Ltd. (SGX: OMK)
Vividthree Holdings Ltd. was established in 2006 and they are Singapore’s first Immersive Digital Content Production Powerhouse specialising in virtual reality (VR), visual effects (VFX) and computer-generated imagery. They are one of the leading content production houses in Singapore with a track record of over 10 years, developing and/or acquiring digital intellectual property (IP) assets.
The company offers a full-service production with support through the entire filmmaking process from story development, post-production, and distribution. Vividthree provided visual effects and computer-generated imagery in the first 3 instalments of the local Ah Boys to Men movie series.
Their listing on 25 September 2018 at $0.25 per share was fully subscribed, raising a total of $12.95 million. It closes at a price of $0.23 on the first day and the latest closing price as of 7 December 2018 was $0.215, a 14% decrease from IPO prices.
Synagie Corporation Ltd. (SGX: V2Y)
Synagie Corporation Ltd. was established in 2014 and is one of the leading E-commerce solutions providers in Southeast Asia in the Body, Beauty and Baby (BBB) sector. The group helps their Brand Partners to execute their E-commerce strategies by selling their goods or services to consumers online. Their platform-based, asset-light business model has three business segments, namely E-commerce, E-logistics and Insurtech.
They have over 250 brand partners in the BBB sector, which include small and medium enterprises (SMEs) and multi-national corporations (MNCs). Some of the prominent brands include Johnson & Johnson, Kimberly-Clark and Shiseido.
They listed on SGX on 8 August 2018 at an offer price of $0.27, which saw an impressive oversubscription of approximately 4.3 times and raising a total of $11.6 million. Synagie closed almost flat at $0.275 on the first trading day and declined to $0.159 at market close this week.
Read Also: Half-Time Report: How IPOs In Singapore Are Faring In 2018
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.
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