Singapore’s equity capital markets

Singapore’s equity capital markets (ECM) tapered off in 2011 with a slight decline of -3 per cent from last year.

It also raised US$ 6.3 billion from 68 equity issues to date while maintaining relatively the same level of activity as 2010, according to the Thomson Reuters’ Singapore 2011 Equity Capital Market Review.

The review showed the follow-on offerings surpass initial public offerings (IPOs) and convertible offerings, with US$ 3.1 billion in raised proceeds, an increase of 14 per cent from 2010.

Convertible issues also saw a 49 per cent growth in raised proceeds totaling US$ 1.4 billion from four issues.

Mapletree Trust’s US$ 764 million IPO was the biggest by a Singaporean domiciled company this year.

The top IPO listed on the Singapore Exchange (SGX) this year still belongs to Hutchison Port Holdings, a Hong Kong domiciled company, for US$ 5.5 billion.

DBS Bank grabs top spot for league table rankings by underwriting US$ 1 billion of equity proceeds involving 11 deals this year.

Citigroup dropped to third place, raising proceeds of US$ 836 million but retaining the highest ranking for estimated fees earned of US$ 18 million.

United Overseas Bank saw the biggest jump, rising from 11th place to 5th in raising US$ 327 million this year.

According to the review, the real estate sector drove Singapore’s ECM, maintaining its dominance for Singapore equity markets with a 40 per cent market share of equity issuance.

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