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Southeast Asia IPO

capital market

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02

Brochure / report title goes here | Section title goes here

Southeast Asia IPO Market overview 03

Biggest IPOs of 2020

07

SEA IPO Market outlook

08

Country in focus: Thailand

10

Country in focus: Malaysia

13

Country in focus: Indonesia

15

Country in focus: Singapore

17

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Southeast Asia IPO capital market | Southeast Asia IPO Market overview

Southeast Asia IPO Market Performance

Capital markets across Southeast Asia achieved market capitalisation of US$29.1 billion, having produced 114 initial

public offerings (IPOs) which raised US$7.0 billion in funds.

Although the number of IPOs had decreased by 29% from 161 to 114 IPOs, the total IPO amount raised remained consistent at US$7 billion. In fact, total IPO market capitalisation in 2020 had increased by 16%, giving a strong

signal to the potential influx of new exciting large-cap companies with higher valuations in the Southeast Asia

IPO market.

Market overview

Year-on-year Summary 20 5 40 10 60 15 80 20 100 25 N um be r o f I PO s Fu nd s r ai se d / M ar ke t C ap ( U S$ b ill io ns ) 120 30 140 35 160 40 180 45 200 50 – – 2016 2017 2018 2019 2020 No. of IPOs 113 178 151 161 114 Funds raised 6 10 10 7 7 Market Cap 19 33 46 25 29
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04 Southeast Asia IPO capital market | Southeast Asia IPO Market overview

Number of IPOs Year-on-year

IPO Market Capitalisation Year-on-year

Market overview by country

Indonesia Malaysia Philippines Singapore Thailand Vietnam Total

2016 16 12 4 16 27 38 113

2017 37 13 4 20 46 58 178

2018 57 22 1 15 23 33 151

2019 55 30 4 11 34 27 161

2020 51 19 4 11 28 1 114

Indonesia Malaysia Philippines Singapore Thailand Vietnam Total 2016 4,348 942 3,911 3,228 4,497 1,704 18,630 2017 3,249 3,939 2,470 6,219 13,537 3,830 33,244 2018 5,998 683 763 2,168 5,355 31,103 46,070 2019 5,071 1,954 1,337 3,176 12,685 939 25,162 2020 2,484 2,900 3,045 2,835 17,590 285 29,139 IP O Ma rk et C ap (U S$ m illio ns ) 2,000 4,000 6,000 8,000 10,000 32,000 2016 2017 2018 2019 2020

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Southeast Asia IPO capital market | Southeast Asia IPO Market overview

IPO Funds Raised Year-on-year

Indonesia Malaysia Philippines Singapore Thailand Vietnam Total

2016 922 366 921 1,662 1,502 195 5,568

2017 1,024 2,219 473 3,492 2,912 304 10,424

2018 1,132 166 153 551 2,850 4,667 9,519

2019 1,052 447 407 2,263 2,996 172 7,337

2020 377 490 809 968 4,356 9 7,009

Key Highlights in SEA

In spite of the Covid-19 pandemic which affected the global economy in 2020, three of the six major Southeast Asian markets

outperformed 2019 in terms of IPO funds raised. Most countries had at least one marquee listing that was the silver lining to an otherwise subdued year in the IPO market. Thailand continued to outperform its regional peers in terms of the amount of funds raised and the size of its companies’ market capitalisation.

Not only did Thailand raise the most funds in Southeast Asia, accounting for 62% of total funds raised across Southeast

Asia in 2020, it also broke the US$3 billion mark for the first time since 2016 with total proceeds of US$4 billion. This

represented a 45% increase over the previous year and with a strong pipeline for 2021, it does not seem to be letting up any time soon.

Singapore came in second despite fewer IPO transactions, contributing to 14% of all funds raised in the region. It also

reinforced its stature as an attractive listing destinationfor foreign companies; 61% of IPO proceeds were raised by companies

with foreign operations. The Singapore Exchange (“SGX”) also saw its first “tech unicorn” IPO with a US$1.3 billion valuation.

The Philippines outperformed itself with nearly double the amount of funds raised and IPO market capitalisation in 2020 as

compared to 2019. It capped off an impressive year with the introduction of its very first REIT listing in the market.

While there were fewer listings in 2020, total IPO market capitalisation did jump by nearly 48% on the back of a listing by a large international home improvement chain, Mr DIY. The local Government also introduced new incentives for growth companies

to list.

Indonesia topped the charts again with the highest number of IPO transactions in Southeast Asia, for the third year in a row. There was a total of 51 new IPOs, contributing to 45% of the total listings in the region. It also saw the first

listing of growth stock under the Acceleration Board.

With the establishment of the Vietnam Stock Exchange as a parent company to the existing Hanoi and Ho Chi Minh City Stock Exchanges, it will streamline the management system and use of harmonised technologies, criteria for listing, reporting and disclosing information. The country is also poised for the quickest economic recovery, thanks to an effective Covid-19

response. 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Funds raised (US$ millions)

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06 Southeast Asia IPO capital market | Southeast Asia IPO Market overview

Average market capitalisation per IPO in Southeast Asia

The above table illustrates all the factors, such as the volume of listings, volume of funds raised and total market capitalisation for comparison across the markets.

Thailand led all but one country in the number of IPOs in 2020, and also towered over the rest with the amount of funds that had been raised. Its average market capitalisation was also much larger than the Southeast Asian counterparts as it saw several successful IPOs from some of the country’s largest corporations.

Similarly, Philippines also welcomed several companies with large market capitalisations.

And while Indonesia saw a voluminous turnout, most listings were small and had low market capitalisation. This

comes on the back the Indonesian’s Government efforts to encourage more growth companies to list on the country’s non-primary stock exchanges.

ID

MY

PH

SG

TH

VN

0 100 200 300 400 500 600 700 800 900 - 10 20 30 40 50 60 A ver ag e m ar ket c ap p er IP O No. of IPOs in 2020

Indonesia Malaysia Philippines Singapore Thailand Vietnam Size of funds raised

Fewer listings; higher market cap

Fewer listings; lower market cap

More listings; higher market cap

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Next 7 biggest IPOs of 2020 in Southeast Asia

#1

Central Retail Corporation Public Corporation Public Company Limited

THAILAND

A family-owned business, with hundreds of malls, electronics, grocery and 24-hour convenience stores across the country. Over the years, the company has acquired several luxury shopping brands in Europe and is now looking to make inroads into the online sales market. Its initial public offering puts the firm amongst Thailand's largest public

companies.

Date of listing: 20 February 2020 Funds raised: US$ 1,767,000,000 IPO Market cap.: US$ 8,004,000,000

#2

SCG Packaging Public Company Limited

THAILAND

The business is focused on becoming a leader of total packaging solutions in the ASEAN region and has been

expanding its food packaging business over the years. It is a subsidiary of the Siam Cement Group, which is the second-largest and oldest cement company in Thailand.

Date of listing: 22 October 2020 Funds raised: US$ 1,266,000,000 IPO Market cap.: US$ 4,774,000,000

PHILIPPINES

#3

Converge Information and Communications Technology Solutions, Inc.

A telecommunication service provider which operates fibre optic broadband networks, cable television and cable

internet. It has a congressional franchise to construct, install, maintain and operate in the Philippine information

and communications system for 25 years until 2034. The company holds 54% of the market share of fibre to homes in the country, and boasts over 900 thousand subscribes across 200 cities in the Luzon region (includes Metro Manila).

Date of listing: 26 October 2020 Funds raised: US$ 523,000,000 IPO Market cap.: US$ 2,330,000,000

Rank Country of Listing Company Date of listing Funds raised (US$ mil) IPO market

cap (US$ mil) Industry #4 Thailand Sri Trang Gloves (Thailand) Public Company Limited 02-Jul-20 475 1,548 Consumer Business

#5 Malaysia MR D.I.Y. Group (M) Berhad 26-Oct-20 362 2,415 Consumer Business

#6 Singapore Nanofilm Technologies International Limited 30-Oct-20 345 1,250 Industrial Products

#7 Singapore United Hampshire US REIT 12-Mar-20 310 395 Real Estate

#8 Thailand Kerry Express (Thailand) Public Company Limited 24-Dec-20 281 1,628 Consumer Business

#9 Philippines Areit, Inc. 13-Aug-20 255 543 Real Estate

#10 Singapore Elite Commercial REIT 06-Feb-20 169 291 Real Estate

Biggest IPOs of 2020

Southeast Asia IPO capital market | Biggest IPOs of 2020
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08 Southeast Asia IPO capital market | SEA IPO Market Outlook

In comparison to:

Source:

(1) World Bank – 2020 estimated forecast per January 2021 report

(2) Asian Development Bank – Asian development outlook supplement December 2020 report (3) www.tradingeconomics.com – Australia GDP annual growth rate as at December 2020 Southeast Asia Economic Prospects

The outbreak of COVID-19 has necessitated the implementation of stringent policy measures, setting off a global economic crisis of unprecedented magnitude. With the number of COVID-19 cases globally still increasing significantly in several regions, it remains to be seen whether the vaccine will tame the spread of the virus, and

consequently its impact on the economy.

Of the six Southeast Asian countries in our report, Vietnam is the only one with a positive GDP full year forecast, albeit a sharp dip from 2019; there is been a tightening for the other SEA countries, with contractions in all five countries' forecast GDP growth.

SEA IPO Market Outlook

Indonesia: -2.2% (2019: 5.0%)(1)

Passing of OMNIBUS law

Privatisation of State-Owned

Enterprises

Singapore: -6.2% (2019: 0.7%) (2)

Companies in the pipeline for SGX

Positive impact to some sectors

amidst Covid-19

Thailand: -6.5% (2019: 2.4%)(1)

Strong pipeline amidst concern on macro environment mainly from

a sharp decline in tourism industry

Vietnam: 2.8% (2019: 7.0%) (1)

Proactive Covid-19 measures

Was not as hard hit by the virus Improving regulatory environment

Malaysia: -5.8% (2019: 4.3%) (1)

Economy impacted by drawn out lockdowns

Tourism and manufacturing hit hard

Low expectations for rebound

Philippines: -8.1% (2019: 6.0%) (1)

High economic costs of containing

the virus

Some optimism for a strong rebound in the coming months

China 2.0% (1) (2019: 6.1%) USA -3.6% (1) (2019: 2.2%) Europe -7.4% (1) (2019: 1.3%) Japan -5.3% (1) (2019: 0.5%) Hong Kong -5.5% (2) (2019: -1.2%) Australia -3.8% (3) (2019: 1.6%)

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Southeast Asia IPO capital market | SEA IPO Market Outlook

Volume of listings and funds raised per quarter in Southeast Asia

“Five out of ten of the largest IPOs in Southeast Asia took place in

Q4 2020. This could be due to the fact that companies had merely

temporarily paused their IPO plans as they ride out the Covid-19

pandemic. It lends a good momentum for a positive outlook for the

start of 2021.”

Ms Tay Hwee Ling, Disruptive Events Advisory Leader, Deloitte Southeast Asia and Singapore

The year started strongly with the listing of Thailand’s Central Retail Corporation Public Company Limited in February, one of the largest IPO of the year. With talks of more IPOs in the pipeline, 2020 was shaping up to be a

very fruitful year in the capital markets. Unfortunately, the virulent spread of Covid-19 across the globe in March quickly placed a damper on it and the subsequent efforts from all governments to contain the spread meant that

all transactions screeched to a stop in April.

Half a year on, the capital markets have since seen a sharp V-shape recovery. Companies have begun resuming their IPO plans and some have successfully listed in late-2020. With more and more countries cautiously reopening

and with the administering of vaccines globally, the outlook of 2021 remains to be seen.

500 1,000 1,500 2,000 2,500 3,000 3,500 0 2,495 104 1,119 3,291 Volume of funds raised 10 20 30 40 0 33 34 35 12 Volume of listings

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10 Southeast Asia IPO capital market | Country in Focus: Thailand

Thailand IPO Performance Year-on-year

“Thailand’s IPO market continues to show its growth potential as one of

the stronger IPO markets in Southeast Asia. Largely driven by

home-grown companies and fuelled by increasing investor interests in firms

focused on consumer businesses, it continues to appeal strongly to

investors and fund managers.”

Ms Wilasinee Krishnamra, Disruptive Events Advisory Leader, Deloitte Thailand

Thailand IPO Market Performance

While setbacks from Covid-19 meant that Thailand could not match the record from previous year for number of listings, it did raise more funds and welcomed firms with larger market capitalisation in 2020.

The country saw only 28 listings in 2020, a decrease of 18% from prior year. Yet the total funds raised and total IPO market capitalisation increased by 45% and 39% respectively, as compared to 2019.

The total funds raised in the Thailand Stock Exchange amounted to over 62% of all funds raised in SEA in 2020, a

large step ahead of its peers. The price-earning ratio of Mainboard listings averaged at about 32.5 times earnings.

Country in Focus: Thailand

Our Insights

2,000 23 2,850 12,685 17,590 5,355 34 28 4,000 6,000 8,000 10,000 U S$ mil lo ns 12,000 14,000 16,000 18,000 – 2000 2019 2020 2,996 4,356
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Southeast Asia IPO capital market | Country in Focus: Thailand

Top 10 IPOs by Market Capitalisation in Thailand

# Company Board Listing date Funds raised(US$ mil) cap (US$ mil) IPO market Industry

1 Central Retail Corporation Public Company Limited SET 20-Feb-20 1,767 8,004 Consumer Business

2 SCG Packaging Public Company Limited SET 22-Oct-20 1,266 4,774 Industrial Products

3 Sri Trang Gloves (Thailand) Public Company Limited SET 02-Jul-20 475 1,548 Consumer Business

4 Kerry Express (Thailand) Public Company Limited SET 24-Dec-20 281 1,628 Consumer Business

5 Saksiam Leasing Public Company Limited SET 08-Dec-20 67 259 Financial Services 6 Siamese Asset Public Company Limited SET 25-Dec-20 28 204 Industrial Products 7 NR Instant Produce Public Company Limited SET 09-Oct-20 43 200 Consumer Business 8 Earth Tech Environment Public Company Limited Mai 18-Aug-20 50 188 Energy and Resources

9 J.R.W. Utility Public Company Limited SET 30-Nov-20 36 138

Technology, Media and Telecommunications 10 Khonburi Sugar Power Plant Infrastructure Fund SET 24-Aug-20 90 90 Energy and Resources

Thailand dominated Southeast Asia’s initial public offering market in 2020, contributing more than 62% of total fund raised in the region. Despite the economic due to the outbreak of COVID-19, the listings of several home-

grown companies in Thailand led the country to take the top spot in Southeast Asia’s IPO market. Central Retail Corporation Public Company Limited was the biggest IPO of the year in Southeast Asia, followed by another Thai

company – SCG Packaging.

Thailand could see the momentum in IPO activity into the next year due to the easing of rules to open up Thai stock market to listings from foreign firms. The first pilot list is expected to see in 2021. In addition, The Stock Exchange of Thailand plans to launch a new stock market for start-ups and small and medium-sized enterprises (SMEs).

There are currently many companies in the pipeline to go public in next year led by PTT Oil and Retail Business, followed by Don Muang Tollway which operates elevated toll road and Ngern Tid Lor which is a non-bank that

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12 Southeast Asia IPO capital market | Country in Focus: Thailand

Percentage of IPO funds raised in Thailand in 2020, analysed by industry

The consumer business industry represents the largest fund raised through IPO in 2020 leading by Central Retail

Corporation, the country’s largest retail department store operator and followed by Sri Trang Gloves and a parcel transporter, Kerry Express (Thailand). Both Sri Trang and Kerry Express’s business have been on an upward trend due to high demand for medical gloves, and a shift of consumer behavior from brick-and-mortar stores to online

shopping.

Industrial Products was the second-largest industry by funds raised in 2020, led by SCG Packaging providing packaging services and solutions. Its business had inadvertently benefited from the COVID-19 pandemic due to increased demand for takeaway food containers and cardboard shipping boxes.

Energy and resources

Real estate

Financial services

Technology, media and telecommunications

Consumer business Industrial products

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Southeast Asia IPO capital market | Country in Focus: Malaysia

Malaysia IPO Market Performance

The long anticipated public offering of Mr D.I.Y Group (M) Berhad had raised over US$362 million in 2020, making

it the largest IPO in the recent three years. With this in the bag, Bursa Malaysia mustered more funds raised compared to 2019, despite the subdued market activity.

Bursa Malaysia saw only 19 listings in 2020, which is nearly two-third of 2019 with a slight increase of 10% in funds raised over the previous year. Nevertheless, Malaysia IPO market capitalisation jumped by 48% in 2020.

Country in Focus: Malaysia

Malaysia IPO Performance Year-on-year

While there were fewer IPO transactions in 2020, it was the opposite for retail investors participation. In a low interest rate environment, investors have looked to the stock markets for greater yields. The average trading

volume has increased by approximately 86% and 208% for Q2 and Q3 2020 as compared to the same quarter

in 2019.

“The high trading volume with buying momentum should remain strong

where investors are generally looking at stock specific rather than

sectors, especially those related to technology and healthcare.”

Mr Wong Kar Choon, Disruptive Events Advisory Leader, Deloitte Malaysia

Our Insights

500 22 166 1,954 2,900 683 30 19 1,000 1,500 2,000 2,500 U S$ mil lo ns 3,000 – 2018 2019 2020 447 490
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14

2

7

10

Number of IPOs per Board in Malaysia

Southeast Asia IPO capital market | Country in Focus: Malaysia

Innature Berhad and Mr. D.I.Y. Group (M) Berhad both raised a total amount of US$389 million and recorded total market capitalisation of US$2.52 billion upon listing.

Mr. D.I.Y Group (M) Berhad is also ranked fifth out of the top 10 biggest IPO in Southeast Asia. Its share price has recorded an appreciation of 95% with total market capitalisation of US$4.88 billion as of 31 December 2020.

Mainboard

Amount raised of US$16 million and recorded total market capitalisation of US$76.75 million upon listing

Leap

Amount raised of US$85 million and recorded total market capitalisation of US$300.97 million upon listing

Ace

Tax deduction

Effective from the year of assessment 2020 to 2022, listings of eligible technology-based companies on the ACE and LEAP Market are eligible for a tax deduction of up to RM1.5 million on the following listing costs:

01. Fees to authorities 02. Professional fees; and

03. Underwriting, placement and brokerage

Economic Stimulus Package 2020

Listing fee waivers to encourage growth in fund-raising activities through listings on the Exchange. Processing fee

Applicable for IPO applications for listings on the ACE Market and the LEAP Market. The fee waiver will be granted for submission made within 12 months from 27 February 2020.

Initial listing and annual listing fees

Applicable to listings of corporations on the ACE Market, LEAP Market and on the Main Market for

corporations with estimated market capitalization of less than RM500 million for companies listed within 12 months from 27 February 2020

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Indonesia IPO Market Performance

For the third year running, Indonesia led the Southeast Asia region again with the highest number of IPO transactions, although there were 51 listings compared to 55 listings in 2019, or a 7% decline.

However, the amount of funds raised was far less than the US$1.0 billion raised in 2019, a marked decrease of 64%. Total IPO market capitalisation has likewise declined by 51% as compared to 2019..

Country in Focus: Indonesia

Indonesia IPO Performance Year-on-year

The Indonesian government has taken steps in recent years to improve investment climate in Indonesia and

encourage local companies to raise funds from the capital market. One way is by reducing corporate tax rates to bring them in line or even lower as compared to its regional peers. There are also ongoing efforts to push state-owned enterprises to publicly float their shares.

1,000 57 1,132 5,071 2,484 5,998 55 51 2,000 3,000 4,000 5,000 U S$ mil lo ns 6,000 – 2018 2019 2020 1,052 377

Number of IPO Amount raised Market cap.

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16 Southeast Asia IPO capital market | Country in Focus: Indonesia

“The increase in the number of IPO transactions in Indonesia reflects

the government’s active efforts to deepen its capital market, through

inter alia, cutting down licensing and bureaucratic processes and

offering tax incentives for listed companies. We expect the number of

IPO transactions next year to remain strong.”

Mr Joe Lai, Disruptive Events Advisory Leader, Deloitte Indonesia

Our Insights

Main Board 2016 2017 2018 2019 2020

Number of IPO 3 7 17 10 8

Total Amount Raised (US$ million) 276 288 508 556 63

Total Market Cap. (US$ million) 2,229 890 3,226 2,368 1,007

Development Board 2016 2017 2018 2019 2020

Number of IPO 13 30 40 45 38

Total Amount Raised (US$ million) 646 736 624 496 302

Total Market Cap. (US$ million) 2,119 2,359 2,772 2,703 1,415

Acceleration Board 2016 2017 2018 2019 2020

Number of IPO N/A N/A N/A N/A 5

Total Amount Raised (US$ million) N/A N/A N/A N/A 12

Total Market Cap. (US$ million) N/A N/A N/A N/A 62

In terms of amounts raised, the sectors that dominated the IPO transactions are consistent with prior years,

namely the consumer business, real estate and financial services, with the addition of the health care sector this year. The largest amount raised during the year was by PT Metro Healthcare Indonesia Tbk, a company in the

healthcare sector.

In prior years, the Indonesia Stock Exchange introduced the Acceleration Board to encourage more small and medium enterprises to raise funds from the capital market. We saw the result of that through the five companies

listed on the Acceleration Board this year.

We also saw several regulatory changes to the benefit of Indonesian companies. The recent omnibus law which reduced the licensing requirements and certain bureaucratic processes is expected to boost the economy. In addition to that, the corporate tax rate has been decreased from 25% in 2020 to 22% in 2021, and will reduce further to 20% in 2022. Listed companies can enjoy a further reduction of 3% if they meet certain criteria.

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Singapore IPO Market Performance

The impact of Covid-19 and the subsequent government measures to contain it, dubbed the “Circuit Breaker” which lasted forapproximately 2 months between April and June 2020, led to a quieter year in the stock market

for IPO transactions.

Country in Focus: Singapore

Total funds raised fell by 57%, from US$2.3 billion to US$1.0 billion and total IPO market capitalisation declined

by 11%, from US$3.2 billion to US$2.8 billion.

However, there were a few bright spots. There were three companies with SGX Mainboard listings in 2020

compared to none in 2019. The three Mainboard IPOs raised US$458 million (S$620 million), which was the best

showing in the last five years.

SGX also maintained its stronghold on being the undisputed leader in REITs and Property Trusts in the region.

Two new REITs were listed on the bourse, which raised US$479 million (S$678 million) and boasted a total market capitalisation of US$686 million (S$969 million) upon listing. The 43 REITs and Property Trusts on SGX are valued at

over S$100 billion, making it the largest REIT market in Asia (excluding Japan).

Singapore IPO Performance Year-on-year

500 15 551 3,176 2,835 2,168 11 11 1,000 1,500 2,000 2,500 U S$ mil lo ns 3,000 3,500 – 2018 2019 2020 2,263 968

Number of IPO Amount raised Market cap.

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18 Southeast Asia IPO capital market | Country in Focus: Singapore

18

# Company SGX Board Listing date Funds raised(US$ mil) cap (US$ mil) IPO market Industry operationsCountry of 1 Resources Global Development Limited Catalist 31-Jan-20 2 13 Energy and Resources Indonesia 2 Elite Commercial REIT Mainboard-REIT 06-Feb-20 169 291 Real Estate United Kingdom 3 Don Agro International Ltd Catalist 14-Feb-20 4 24 Consumer Business Russia 4 Memiontec Holdings Ltd Catalist 05-Mar-20 5 35 Energy and Resources Singapore 5 United Hampshire US REIT Mainboard-REIT 12-Mar-20 310 395 Real Estate United States 6 Southern Alliance Mining Ltd Catalist 26-Jun-20 14 88 Energy and Resources Malaysia

7 Singapore Paincare Holdings Limited Catalist 30-Jul-20 4 26 Life Sciences and

Healthcare Singapore

8 Nanofilm Technologies International Limited Mainboard 30-Oct-20 345 1,250 Technology Singapore

9 Credit Bureau Asia Limited Mainboard 03-Dec-20 21 162 Financial Services Singapore

10 Aedge Group Limited Catalist 11-Dec-20 2 15 Consumer Business Singapore

11 G.H.Y Culture & Media Holding Co., Limited Mainboard 18-Dec-20 92 536 Consumer Business China

2020 Total Count: 11 968 2,835

The Singapore stock market saw a flurry of activities right off the bat in Q1 2020, as it welcomed five new

listings, of which two were REITs. The total monies raised in this quarter was a hefty US$490 million, which dwarfed the US$29 million of funds raised in Q1 2019. It was therefore no surprise that investors were gearing up for a big year in 2020.

Unfortunately, Covid-19 cast a pall over the market, with just two IPOs in the next six months raising US$18 million. However, the market picked up again in October as aspiring listing applicants came back in force,

raising US$460 million in the last quarter, rivalling Q1 2020 results.

Among the heavyweights was the IPO of Nanofilm Technologies International Limited. With a market capitalisation of US$1.3 billion and a price-earning ratio of 41 times, some have called it the first “tech unicorn” in Singapore. The introduction of a new large-cap technology stock in an otherwise REIT-dominated SGX naturally pipped the interest of many investors, fuelling talks of more technology

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Percentage of IPO funds raised in Singapore in 2020, analysed by industry

The Real Estate industry continues to provide the larger part of funds raised through an IPO and SGX remains the regional hub for REITs and Property Trusts. The funds raised by the two REITs, United Hampshire US REIT and Elite

Commercial REIT, amounted to US$479 million or 50% of all funds raised in 2020.

The technology industry saw a large jump in funds raised in 2020. Not surprisingly, it was thanks to the listing of Nanofilm Technologies International Limited, whose US$345 million IPO singlehandedly contributed to 36% of all funds raised in 2020.

“In a time of crisis, companies can find new growth by making

fundamental changes to their business model. Sectors like healthcare

and its suppliers have benefitted from the COVID-19 pandemic.

Investors have also responded to the crisis and are adapting to the

next normal – we have seen a significant increase in trading activities

as the pandemic unfolded during the lockdowns. The use of technology

for virtual IPO roadshows have allowed companies to break down

barriers, gaining access to a wider pool of investors.”

Ms Tay Hwee Ling, Disruptive Events Advisory Leader, Deloitte Southeast Asia and Singapore

Our Insights

Consumer business Energy and resources Technology Real estate

Southeast Asia IPO capital market | Country in Focus: Singapore

12%

2%

50%

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20 Southeast Asia IPO capital market | Country in Focus: Singapore

Key events and highlights in the Singapore capital market in 2020

Plucky Performance

The SGX performed relatively

well despite the set backs from

Covid-19, pulling through the year

with three companies and two

REITs listing on the Mainboard, and six companies

listing on the Catalist Board. The Singapore IPO capital market has raised more funds from companies listing on the Mainboard in 2020, than

in the last five years.

Foreign Partnership

SGX regulatory arm (“SGX RegCo”) signed a Memorandum

of Understanding with Nasdaq

in July 2020 that reaffirms both stock exchanges’ partnership in cooperating

on regulatory matters, including a streamlined framework for issuers seeking a secondary listing

on either exchange.

Resilience and Stability

Under the Government mandate,

Singapore was able to rein in the

continued spread of Covid-19, which was initially proving difficult to stop in a dense city-state. This eventually resulted in the gradual re-opening of the

economy, as we continue to remain vigilant and cautious.

REITs Leader

With another two REITs under its belt and a total market valuation of

over S$100 million, SGX remains the

undisputed leader in the Southeast

Asia region and a global hub for Asia (ex Japan)

when it comes to attracting REITs to Singapore’s doorstep.

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Evolution of REITs in

Southeast Asia

Overview of REITs and Property Trusts in Southeast Asia

No REIT listing

59 REITs and property trusts. Almost all assets held are domestic

Welcomed its very first REIT, AREIT Inc., in 2020

REIT regulatory framework established in 2016. 11 REITs listed in total. 43 REITs and property trusts valued at over S$100 billion. Largest REIT market in

Asia (ex Japan)

18 REITs, of which 4 are Shariah compliant, with market cap of about RM40.4 billion Southeast Asia IPO capital market | Evolution of REITs in Southeast Asia

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22 Southeast Asia IPO capital market | Evolution of REITs in Southeast Asia

Percentage of funds raised in 2020, analysed by industry

REITs have also slowly moved away from non-traditional types of

real estate assets.

The trend is likely to continue in the future, judging by the two

new REITs in 2020, one of which is a U.S. grocery anchored and

necessity-based retail and self-storage properties REIT.

At the start, almost all REITs were domestic, providing investors the safe investments that they were familiar with.

Over time, investors’ appetite grew, and REITs started to comprise with

foreign assets “closer to home”. 19 REITs which started

with fully local assets have now

have diversified and acquired

foreign assets.

Today, there are REITs

with 100% offshore

assets. 39 of Singapore’s 43 REITs own at least

some offshore assets globally. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

so far

Multi-region Rest of SEA Rest of East Asia Europe

China/Hong Kong U.S. South Asia Australia/NZ Local and foreign - Singapore and multi-regionLocal only - Singapore

2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1 1 1 1 1 4 3 1 3 1 4 1 1 Foreign only: Fully local-based

assets assets 'closer to home' in AsiaEmergence of pure foreign Shift towards Europe and U.S. in recent years

Hospitality 17% Commercial 17% Industrial 18% Diversified 13% Non-traditional 11% Retail 24% Data centres 2% Others 4% Healthcare 5% Non-traditional assets

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Diversity of Assets in Malaysia

First Shariah compliant REIT (i-REIT) in the world, Al-Aqar REIT was launched in June 2006 by the Johor

Corporation. Started with 6 hospital assets, the number of assets has since grew to 23 with total value of RM1.57b.

First restructuring of conventional REIT, Axis REIT which converted into i-REIT in 2008, is the world’s first Islamic REIT with industrial and office properties.

While conventional REIT and i-REIT are fundamentally the same, the income of i-REIT:

Must be from Shariah permissible activities; or

In case of mixed activities, must adhere to 20% benchmark as determined by the Shariah Advisory Council of

Securities Commission of Malaysia

Shariah committee or advisor must be appointed to advise the fund manager on Shariah compliancy matters.

i-REIT has created the opportunity for Muslim investors and institutions who seek to invest in investments that naturally fit with the Islamic finance principles.

Services

Diversified

25%

75%

Hospitality

Industrial and warehouse

Diversified Retail and office

7% 14%

7%

72%

Conventional REIT I-REIT

22%

78%

(24)

Southeast Asia IPO capital market | Section title goes here

24

“COVID has made companies revaluate

their business and growth forecast; and

companies are looking into windows of

opportunity to raise funds from stock

markets to support their growth and

stay resilient in this challenging climate.

Although we are not out of the woods yet,

the listing markets in Southeast Asia are

still dynamic and attractive to investors.”

Ms Tay Hwee Ling,

Disruptive Events Advisory Leader, Deloitte Southeast Asia and Singapore

(25)

Southeast Asia IPO capital market | Contact us

Contact us

To find out more, please contact the respective DEA Country Leaders:

Southeast Asia and Singapore Tay Hwee Ling

Leader, Disruptive Events Assurance hwtay@deloitte.com +65 6216 3258 Indonesia Joe Lai joelai@deloitte.com +62 21 5081 8009 Malaysia

Wong Kar Choon kcwong@deloitte.com +60 3 7610 8820 Myanmar Cho Aye aycho@deloitte.com +95 96 7980 6766 Philippines Baltazar Wilfredo wbaltazar@deloitte.com +63 2 581 9000 ext 011 Thailand Krishnamra Wilasinee wkrishnamra@deloitte.com +66 2034 0149 Vietnam Nam Pham Hoai npham@deloitte.com +84 24 710 50599

(26)

Southeast Asia IPO capital market | Section title goes here

(27)

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and each DTTL member firm and related entity is liable only for its own acts and

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Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each

of which are separate and independent legal entities, provide services from more

than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai,

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This communication contains general information only, and none of Deloitte

Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this

communication, rendering professional advice or services. Before making any

decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.

No representations, warranties or undertakings (express or implied) are given

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and none of DTTL, its member firms, related entities, employees or agents shall

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References

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