Singapore can wield stick to win tech IPOs

16-Jun-2021 Intellasia | Reuters | 5:02 AM Print This Post

Technology companies based in the city-state are feeling the heat. New York-listed conglomerate Sea (SE.N), ride-hailing-to-payments app Grab a target of a US special-purpose acquisition vehicle read more and Hong Kong-listed gaming company Razer have considered or been approached to trade their shares at home, per the FT citing sources.

It’s a tough sell given Singapore Exchange’s limited liquidity pool. With a market capitalisation of $145 billion, Sea is already more than twice as large as the FTSE Straits Times Index’s top constituent, lending group DBS (DBSM.SI). Nor does the staid market popular with real-estate trusts offer the kind of hot valuations startups and tech giants crave. That dynamic will be hard to change even if blank-cheque read more companies are allowed to list.

Singapore might persuade heavily regulated companies, especially those dabbling in payments, that they ought to plant a flag at home. It’s less attractive though than for the likes of Alibaba (9988.HK) whose partial homecoming to Hong Kong benefitted from access to giant pools of liquidity.

https://www.reuters.com/breakingviews/singapore-can-wield-stick-win-tech-ipos-2021-06-15/

 

Category: Singapore

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