Thursday, June 20, 2024
HomeBusinessSGX CEO on initiatives to attract SPAC listings to Singapore, tech IPOs

SGX CEO on initiatives to attract SPAC listings to Singapore, tech IPOs


Related stories

Maximize your claim settlement: Hire an injury lawyer in Salt Lake City

Imagine this – You were driving as usual in Salt...

3 Ways in Which Search Engine Optimisation Could Boost Traffic Numbers To Your Website

In the constantly evolving and fast-paced digital landscape at... A Comprehensive Guide To Localhost, Fixing, Configuring and Working

Technology has numerous terms that have unique importance and...

Which DNA test is the most reliable for determining paternity?

When it comes to determining paternity, DNA tests are the...


Auditorium of the Singapore Exchange (SGX).

Roslan Rahman | AFP | Getty Images

SINGAPORE — The Singapore Exchange could receive its first application for a SPAC listing in “the next couple of weeks,” Chief Executive Loh Boon Chye told CNBC in an exclusive interview.

SGX earlier this month announced new rules allowing SPACs to list on its platform. Loh said the exchange is speaking with potential sponsors and is seeing “a robust pipeline” of potential listings.

“We think some of them would come through in terms of seeking out the submission in the next couple of weeks,” the CEO said.

“But obviously, the market has to hold for them to be on submission, and really list and raise funds,” he added. “If the markets continue to go up well, we think some of those pipelines will crystallize into actual IPOs.”

Stock picks and investing trends from CNBC Pro:

SPACs, or special purpose acquisition companies, are shell companies without any operations. They are created and sponsored — usually by institutional investors — for the sole purpose of raising money through an initial public listing, and eventually acquire another operating business.

SPACs have been around for decades in the U.S. But they’ve exploded in popularity over the past year as an alternative way for private businesses to list on stock exchanges since they bypass the traditional IPO route which can be a time-consuming and complicated process.

Attracting tech IPOs

The Covid-19 pandemic has caused economic uncertainty, but it hasn’t dented optimism among investors significantly, said Loh. Such sentiment in markets, along with efforts by the government and SGX, could help boost IPO activity in Singapore, said the CEO.

“With the current low interest rate environment, investors need to search for yield, for returns. And that continues,” he said. “A low-rate environment generally is positive for equities and, consequently, for capital raising or equity listings.”  

In the first half of 2021, SGX had three IPOs with total proceeds of 337 million Singapore dollars ($250.54 million), according to data by Deloitte. That compared with 11 IPOs that raised around 1.34 billion Singapore dollars throughout 2020, the data showed.

While tech stocks have garnered a lot of investor attention in the past year, Loh said companies in “traditional sectors” have been resilient through the pandemic.

“Don’t forget that these are strong sectors and within that, if they’re strong companies, they do reward shareholders,” said the CEO.

Singapore’s benchmark Straits Times Index is dominated by finance and property stocks. It has outperformed many of its regional peers this year, gaining around 7.8% as of Thursday’s close.  

As companies in the digital economy sectors grow, it’s only “natural” that the SGX would see some changes to the mix of its listed companies, said Loh. He told CNBC he hopes the initiatives announced by the government on Friday will bring more tech companies to list on SGX.

See also  Ways To Keep Business Energy Costs Low

“Some of these new economy companies that we talked about … operating out of Singapore, operating beyond Singapore in this part of the world, we are hopeful that some of these will come to the market.”  

— CNBC’s Weizhen Tan contributed to this report.


Source link

Bellie Brown
Bellie Brown
Hi my lovely readers, I am Bellie brown editor and writer of I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting

Latest stories