Brochure / report title goes here | Section title goes here...Vietnam In Vietnam, the IPO capital market raised a total of S$6.2 billion in 2018 alone, far exceeding the funds raised

Southeast Asia IPO market Southeast Asian bourses show strong performance in 2018 even as companies in region look beyond their local shores2018 Report

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Brochure / report title goes here | Section title goes here

Southeast Asia IPO market 03

Vietnam’s IPO market in 2018 09

Singapore’s IPO market in 2018 11

Contact us 18

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Southeast Asia IPO market

Southeast Asia performanceCapital markets across Southeast Asia have performed relatively well in 2018, compared to the past

five years, with a record high market capitalisation of S$62.2 billion, having produced 152 initial public offerings (IPOs) and raising S$12.5 billion of funds.

The IPO market capitalisation in Southeast Asia increased by 36.5% from 2017’s S$45.6 billion

to 2018’s S$62.2 billion. Vietnam produced the highest IPO market capitalisation of S$41.4 billion in 2018, accounting for 67% of the total IPO market capitalisation for the region in 2018.


Indonesia Malaysia Philippines Singapore Thailand Vietnam

2014 5,153 6,736 2,167 15,303 11,998 1,207

2015 6,357 4,561 559 1,888 8,470 1,297

2016 5,950 1,285 5,479 4,396 6,237 2,324

2017 4,434 5,569 3,415 8,470 18,429 5,243

2018 8,107 918 1,042 2,883 7,887 41,368

Total42,564

23,132

25,671

45,560

62,205

30,001 19,069 12,662 32,940 53,021 51,439 199,132

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

IPO

Mar

ket

Cap

(S$M

illi

ons)

IPO Market Capitalisation by country

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018No of IPOs 149 154 113 178 152Amt Raised 9,269 5,312 7,525 13,466 12,511Market Cap 42,564 23,132 25,671 45,560 62,205

Total746

48,083199,132

149 154

113

178

152

9,269

5,3127,525

13,46612,511

42,564

23,13225,671

45,560

62,205

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0

20

40

60

80

100

120

140

160

180

200

Amou

nt r

aise

d/IP

O M

arke

t Cap

(S$M

illi

ons)

Num

ber

of IP

Os

Amount raised, market capitalisation and number of IPOs 2014 - 2018

No of IPOs Amt Raised Market Cap

04


VietnamIn Vietnam, the IPO capital market raised a total of S$6.2 billion in 2018 alone, far exceeding the funds raised in the past years. This was due to several factors including the Vietnam government’s privatisation drive and market reforms, strong interest from foreign investors and local funds, as well as the high GDP growth of 6.8% in 2018. Many large SOEs were being divested, especially in the energy and resources industry, which contributed significantly to the high amount of funds raised.

ThailandEven amid stagnating economic growth mid-year, Thailand still managed to come in second with S$3.4 billion worth of funds raised, maintaining its strong IPO performance trend from the past 4 years. The Thai property market has been strengthening, with demand for residential property growing. This can also be seen with the real estate sector being one of the main contributors to capital raised via IPOs for Thailand.

IndonesiaIndonesia was the third best performer with S$1.7 billion worth of funds raised from a total of 57 IPOs in 2018, the highest number of IPOs in the region. This is surprising to many especially with Indonesia facing stagnating economic growth the past 5 years, a weak rupiah and poor global and local investors’ demand due to global uncertainty. The increase could also be an indicator that IDX’s efforts to encourage IPOs in the local bourse has paid off. The financial services industry was the main contributor to funds raised through IPOs in Indonesia, with the sector raising S$416 million with only 9 IPOs.

“With the Vietnam Finance Ministry proposing to remove the 49% foreign ownership cap for listed companies, and the stock exchange streamlining the listing and IPO process, we can expect the Vietnam IPO market to continue to do well in the next few years.” – Ms Tay Hwee Ling, Global IFRS & Offerings Services Leader, Deloitte Southeast Asia and Singapore

Indonesia Malaysia Philippines Singapore Thailand Vietnam2014 964 1,779 425 3,451 2,515 135

2015 1,166 1,128 157 512 2,085 264

2016 1,264 377 1,277 2,263 2,078 266

2017 1,399 2,362 654 4,661 3,971 419

2018 1,697 251 208 730 3,402 6,223

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Amou

nt r

asis

ed (S

$Mil

lions

)

6,490 5,897 2,721 11,617 14,051 7,307

Total9,269

5,312

7,525

13,466

12,51148,083

Amount raised by country 2014-2018

2014 2015 2016 2017 2018

This performance was led by Vietnam, followed by Thailand, which respectively accounted for 50% and 27% of total funds raised in 2018.

Vietnam emerges as top performer in Southeast Asia with largest funds raised in 2018

05


The top three blockbuster listings in Southeast Asia for 2018 came from Vietnam and Thailand:

Top 3 IPOs

Vietnam Technological and Commercial Joint Stock Bank “TechComBank”, one of the leading commercial banks in Vietnam, raised S$1.2 billion. With more than 5.4 million customers in Vietnam, it is one of Vietnam’s largest private sector banks and one of the leading banks in Asia.

Thailand Future Fund (TFFIF) raised S$1.8 billion. As an infrastructure fund launched by the government, it invests 45% of toll revenue of the Expressway Authority of Thailand on two expressways, totalling 83.2km, over 30 years. Proceeds from the fund’s IPO will be used to finance construction of another two expressways projected to be in a range between 4.75% and 5.3% in the first year.

Vinhomes Joint Stock Company (“JSC”) raised S$3.6 billion on the HCM Stock Exchange. It is the residential property developer of conglomerate Vingroup JSC VIC.HM, which operates in real estate, education, healthcare, entertainment, retailing and automobile manufacturing sectors. Drawing strong interest from global and local funds, it is the country’s biggest-ever IPO in a market. As the dominant player in the high-end property segment in Hanoi and Ho Chi Minh City, it has Singapore's GIC as a pre-IPO investor with 7% stake of US$853 million.

S/N Country of listing

Company name Date of listing

IPO market cap (S$’bil)

Amount raised (S$’bil)

Industry

Vietnam Vinhomes Joint Stock Company 7 May 2018 14.5 3.6 Real Estate

Thailand Thailand Future Fund 31 Oct 2018 1.9 1.8 Financial Services

Vietnam Vietnam Technological and Commercial Joint Stock Bank

22 May 2018 8.8 1.2 Financial Services

06


IPOs by industry

61

25

14 15 124

813

2,352

4671,093

3,761

4,655

42 22 119 05001,0001,5002,0002,5003,0003,5004,0004,5005,000

0

10

20

30

40

50

60

70

Amou

nt r

aise

d (S

$Mill

ions

)

Num

ber

of IP

Os

No. of IPOs Amount raised

No. of IPOs Amount raised

216

132 107

54

99

3256 50

8,094

3,070

10,221

4,663

16,971

1,373492

3,199

02,0004,0006,0008,00010,00012,00014,00016,00018,000

0

50

100

150

200

250

Amou

nt r

aise

d (S

$Mil

lions

)

Num

ber

of IP

Os

2014-2018 IPOs by industry

2018 IPOs by Industry

Consum

er Busin

ess

Industr

ial Pro

ducts

Energy a

nd Resource

s

Financia

l Serv

ices

Real Esta

te

Life Sc

iences a

nd

Health Care

Public Se

ctor

Technology,

Media and

Telecom

munica

tions

Consum

er Busin

ess

Industr

ial Pro

ducts

Energy a

nd Resource

s

Financia

l Serv

ices

Real Esta

te

Life Sc

iences a

nd

Health Care

Public Se

ctor

Technology,

Media and

Telecom

munica

tions

The increase in amount raised for Financial Services in 2018 was largely due to the 2 blockbuster listings: Thailand Future Fund and Vietnam Technological and Commercial Joint Stock Bank. Both listings raised a total of S$3 billion worth of funds, 80% of the amount raised by the entire industry in the region for 2018.

There was a 30% growth in amount raised by Real Estate IPOs in 2018. Of the S$4.66 billion raised by Real Estate in 2018, 77% is attributed to Vietnam’s top listing Vinhomes Joint Stock Company.

Top count 216 IPOs from the Consumer Business sector from 2014 - 2018, of which Vietnam had a total of 80 Consumer Business sector IPOs in the last 5 years. The Consumer Business sector in the region has been seeing a steep increase in the number of IPOs in the past 2 years. This is likely due to the rapid growth in consumer demand in the ASEAN region and a burgeoning middle-income group due to more recent pro-growth policies and projects by governments in the region.

Highest amount raised S$17 billion raised by IPOs from the Real Estate sector over the past 5 years. Singapore’s Real Estate IPOs have the highest cumulative capital of S$6.2 billion raised, largely due to high value Real Estate sector IPOs in 2016 and 2017. The Real Estate sector is expected to continue in its positive trend, with Thailand’s increasing residential construction activity and land prices, and the Philippines government’s big infrastructure projects to spur economic growth.

07


Companies in the region have more options and are increasingly exploring overseas listingOn top of their own local exchanges, companies in the region are looking overseas. In the past five years from 2014 to 2018, Southeast Asian companies raised a total of S$3.6 billion on overseas exchanges, indicating that companies in the region are open to explore their options outside of their country to raise funds.

The most popular exchange outside of the region is Hong Kong, where S$3.2 billion was raised by Southeast Asian companies over the last five years. However, the average cross-border IPO funds raised in 2018 is lower than the average funds raised by companies in their domestic exchanges within Southeast Asia.

Funds raised by Southeast Asian companies on foreign exchanges from 2014 to 2018

Australian Securities Exchange (ASE)

S$74m

Taiwan Stock Exchanges*

S$97mHong Kong Exchange (HKEx)

S$3,187m

London Stock Exchange (LSE)

S$221m

*This pertains to 2 exchanges: Taipei Stock Exchange (TPEX) and Taiwan Stock Exchange (TWSE) which had raised S$67m and S$30m respectively from 2014 – 2018.

“Traditionally, companies tend to list in the countries where they do their business in, which is typically their home country where they have established their brand locally. However, the tide appears to be shifting, and companies are looking for opportunities in overseas exchanges.

There are several reasons for this shift, for example, companies may feel that they want to raise capital in markets they hope to expand into, or they lack confidence in their local markets’ ability to help them raise the funds they require to grow. This is where local bourses need to step up their game and educate their local companies on the benefits of listing locally.” – Tay Hwee Ling, Global IFRS and Offerings Services Leader, Deloitte Southeast Asia and Singapore

08


We can expect a volatile year ahead with a string of international factors expected to drive fluctuations, including global trade disputes and U.S.-China trade barriers, the outcome of Brexit, the rising interest rates courtesy of the U.S. Federal Reserve and other central banks, as well as the GDP growth in the region.

However, there continues to be a pipeline of IPO hopefuls and liquidity in the capital markets. While investors generally gravitate toward more “recession-proof” and commodity-focused sectors, such as energy and resources, and materials and utilities, we believe that technology and health care will also offer opportunities for investors in 2019, barring unforeseen circumstances.

Outlook for Southeast Asia IPO market

Malaysia: 4.7%*Malaysia’s growth is fueled by exports especially in palm oil and liquefied natural gas (LNG). The services sector is another key driver for the growth fueled by wholesale & retail trade, and information & communication. On the expenditure side, private consumption also contributed to the growth. However, the cancellation of several infrastructure projects and slowing export growth have also caused a slowdown in growth.

The Philippines: 6.4%*The Philippines’ economic growth was driven by investment in manufacturing and technology constructions, exports as well as government expenditure in infrastructure and industrial projects.

Vietnam: 6.8%*Vietnam’s growth is primarily seen in the services and industry-construction sectors. In addition, exports and Foreign Direct Investment (FDI) are key drivers for Vietnam’s expanding economy growth.

Singapore: 3.2%*The manufacturing sector remained a strong pillar of support especially in domestic electronics production due to the global tech cycle. Other segments such as pharmaceutical, wholesale & retail trade, as well as finance & insurance, all recorded accelerated year-on-year growth.

Thailand: 4.1%*Thailand’s economy expanded due to the exports and tourism sectors. Notably, the government’s infrastructure investment programme is expected to spur growth in the services sector and economic growth for Thailand.

Indonesia: 5.2%*Indonesia’s economy was lifted by strong investment in machine, equipment and vehicles. Furthermore, stronger domestic demand was expected compared to the previous year.

*Extracted from these sources:Malaysia, Philippines, Vietnam, Thailand, Indonesia, China, Japan, Europe and US GDP forecast for 2018: http://www.worldbank.org/en/publication/global-economic-prospects#data

SG GDP Forecast 2018: http://www.mas.gov.sg (Economy policy group: Survey of professional forecasters)

HK and Australia GDP Forecast 2018: https://tradingeconomics.com/hong-kong/forecast and https://tradingeconomics.com/australia/forecast

China: 6.5%*

United States: 2.9%*

Europe: 1.9%*

Japan: 0.8%*

Hong Kong: 2.9%*

Australia: 2.8%*

China USA EU Japan Hong Kong Australia

09


Vietnam’s IPO market in 2018

Vietnam is currently Southeast Asia’s hottest capital market, having produced the highest IPO

market capitalisation and in IPO amount raised in 2018.

Vietnam saw 33 listings in 2018, with the amount of funds raised totalling S$6.2 billion, more

than 14-fold increase from 2017’s S$419 million. The total IPO market capitalisation was S$5.2 billion

in 2017 in Vietnam, which increased by almost eight times to S$41.4 billion in 2018. This

includes Vinhomes Joint Stock Company (“JSC”) and Vietnam Technological and Commercial Joint

Stock Bank (“TechComBank”) which raised S$3.6 billion and S$1.2 billion respectively, making up 58%

and 20% of the total funds raised for Vietnam in 2018.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2105 2016 2017 2018

IPO amount raised IPO Market Capitalisation

Vietnam IPO performance in 2014 -2018

IPO

Mar

ket C

ap (S

$Mill

ions

)

Amou

nt R

aise

d (S

$Mill

ions

)

135 1,207 1,297 2,324

5,243

41,368

264266 419

6,223

Vietnam's strong performance in 2018 can be attributed to the following reasons:

Vietnam government’s ambitious privatisation drive and market reform plans. This will continue to push IPO activities.

Strong interest from foreign investors and local funds that will continue to drive listing activities in 2019.

The capital market was underpinned by the solid GDP growth of 6.8% in 2018.

6.8%

10


No Company Listing date Sector Market Cap (S$’mil)

Amount raised (S$’mil)

1 Vinhomes JSC 7-May-18 Real estate 14,482 3,607

2 Vietnam Technological and Commercial Joint Stock Bank

22-May-18 Financial Services

8,754 1,233

3 PetroVietnam Power Corporation 31-Jan-18 Energy and Resources

2,017 403

4 Binh Son Refining and Petrochemical Company Limited

17-Jan-18 Energy and Resources

4,119 321

5 PetroVietnam Oil Corporation 25-Jan-18 Energy and Resources

1,204 241

6 Yeah1 Group Corporation 19-Jun-18 Consumer Business

407 116

7 Vietnam Rubber Group Limited 2-Feb-18 Consumer Business

3,032 76

8 Vietnam Southern Food Corporation – JSC

14-Mar-18 Consumer Business

290 67

9 Hanoi Trade Joint Stock Corporation 30-Mar-18 Consumer Business

163 56

10 Bình Dương Production and Trading Goods Corportation

28-Mar-18 Consumer Business

301 30

Total 34,769 6,150

Future Developments in the Vietnam Capital Market

Attracting more overseas capital to the local market

In an effort by the finance ministry to upgrade Vietnamese stocks to the MSCI Emerging Markets Index, Vietnam has proposed to remove the 49% foreign ownership cap in listed companies as part of the new securities law framework.

Streamlining the IPO and listing process to become only one process, similar to international practice

The new law also proposes that companies could go ahead with listing after the completion of the initial public offering process. This change is significant given that listing and IPO are different processes in Vietnam. Under the current regulations, businesses have to list within one year after the IPO.

The new law is expected to be approved by the end of 2019, and take effect in 2020.

Top 10 IPOs in Vietnam in 2018

We can expect the strong performance to continue with the following plans by the Vietnam government to further develop the capital market:

11


Singapore’s capital market experienced a slowdown in 2018, compared to 2017 Singapore saw 15 listings in 2018, with the amount of funds raised totalling S$730 million,

an 84% fall from 2017’s S$4.7 billion. This includes two company IPOs and one trust on SGX

Mainboard with S$134 million and S$422 million funds raised respectively. On the

Catalist board, 12 deals raised S$174 million.

790

-235 298

134

2,355

276

1,921

4,090

422 306 237

106 273

174

15,303

1,888

4,396

8,470

2,883

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 2015 2016 2017 2018

IPO

Mar

ket C

ap (S

$Mill

ions

)

Singapore IPO performance in 2014 – 2018

Amount Raised - Mainboard Amount Raised - Mainboard - Trusts

Amount Raised - Catalist IPO Market Cap

Amou

nt R

aise

d (S

$Mill

ions

)

Singapore’s IPO market in 2018

Foreign-based assets have a dominant presence on the SGX, which is evidently a preferred international market for listing. In the past five years, foreign companies listed on the SGX from developed countries such as Australia, Europe, United States of America, and Japan and in recent years, China, typically raised between 2.5 to 7 times more funds when compared to Singapore counterparts.

Num

ber

of IP

Os

Amou

nt r

aise

d fo

r IP

O (S

$Mill

ions

)

0

10

20

30

40

50

60

70

80

-

100

200

300

400

500

600

700

800

Asia Australia China Europe SoutheastAsia

Singapore Japan UnitedStates

Average amount raised by country of operations

Average Amount Raised Number of IPOs

12


Singapore IPOs in 2018

No Company Mainboard / Catalist

Date of listing

Amount Raised (S$’mil)

Price Earning

Ratio

IPO Market

Cap (S$’mil)

IPO Offer Price

Current Price

(31-Dec-18)

Share Price % change

Industry Country of Operations

1 LY Corporation Limited

Catalist 31-Jan-18 19.72 7.7 127.18 0.26 0.25 -4% Consumer Business Malaysia

2 ayondo Ltd. Catalist 26-Mar-18 21 NA 130.69 0.26 0.072 -72% Financial Services Europe

3 Sasseur REIT Mainboard - Trust

28-Mar-18 421.6 NA 1,340.22 0.8 0.65 -19% Real Estate China

4 SLB Development Ltd.

Catalist 20-Apr-18 54.74 9.79 209.99 0.23 0.168 -27% Real Estate Singapore

5 Asian Healthcare Specialists Limited

Catalist 20-Apr-18 10.79 127.8 66.7 0.23 0.26 13% Life Sciences and Health Care

Singapore

6 Hyphens Pharma International Limited

Catalist 18-May-18 15.6 10.4 78 0.26 0.195 -25% Life Sciences and Health Care

Singapore

7 Jawala Inc. Catalist 1-Jun-18 4.5 42.6 29.62 0.25 0.178 -29% Energy and Resources

Malaysia

8 PropNex Limited Mainboard 2-Jul-18 60.13 12.3 240.5 0.65 0.48 -26% Real Estate Singapore

9 Koufu Group Limited

Mainboard 18-Jul-18 74.35 13 349.75 0.63 0.615 -2% Consumer Business Singapore

10 DLF Holdings Limited

Catalist 25-Jul-18 4.26 8.3 27.86 0.23 0.158 -31% Consumer Business Singapore

11 Synagie Corporation Ltd

Catalist 8-Aug-18 11.61 NA 70.66 0.27 0.16 -41% Consumer Business Singapore

12 Vividthree Holdings Ltd.

Catalist 25-Sep-18 12.95 24.51 83.5 0.25 0.192 -23% Technology, Media and Telecommunications

Singapore

13 MeGroup Ltd. Catalist 31-Oct-18 3.8 7.93 27.26 0.23 0.205 -11% Consumer Business Malaysia

14 Medinex Limited Catalist 7-Dec-18 7.5 25 32.8 0.25 0.27 8% Life Sciences and Health Care

Singapore

15 Biolidics Limited Catalist 19-Dec-18 7.7 NA 67.9 0.28 0.22 -21% Life Sciences and Health Care

Singapore

Total count: 15 2018 Total 730.25 2,882.63 Average -21%

Total count: 20 2017 Total 4,660.94 8,470.11 Average 35%

Total count: 16 2016 Total 2,262.82 4,395.80 Average 15%

The largest IPO in 2018 - Largest funds raised by Sasseur REIT from China at S$422m

Worst Performer - ayondo did badly likely due to the poor financial performance for Q2 2018 and the high risks arising from its nature of business

Best Performer - Health care stocks tend to outperform other IPOs and we can expect more IPOs from these industries

Total foreign listings from 5 IPOs (LY Corporation Limited, Ayondo Ltd, Sasseur REIT, Jawal Inc and MeGroup Ltd.) accounted for 64% of total funds raised

There were 2 lodgements on Catalist as at 31 December 2018:1. Grand Venture Technology Limited (lodgement date 14 December 2018 and subsequently listed on 23 January 2019 at IPO price of S$0.275 and raised S$13.2 million with market capitalisation of S$64.4 million)2. Sim Leisure Group Ltd (lodgement date 27 December 2018)

No. of IPOs.

Amount Raised (S$mil)

IPO Market Cap (S$mil)

Mainboard Trusts 1 421.60 1,340.22

Companies 2 134.47 590.25

Catalist 12 174.16 952.16

Total 15 730.23 2,882.63

The Singapore stock market saw a plunge in 2018. The 2018 IPOs share price performance is in line with the fall in STI of -11%, with two major sell-offs on Wall Street in February and October 2018, arising from increasing interest rates in the US, the China-US trade war and the International Monetary Fund (IMF) warning of global financial stability risks. The property cooling measures by the Singapore government added to the negative impact on the stock market.

13


In 2018, 40% of the IPOs listed on SGX had market capitalisations of above S$100 million each, of which half were Singapore-based companies.

Aside from the only REIT listing, the top 3 in terms of funds raised are from Singapore companies: Koufu Group Ltd (S$74m), SLB Development Ltd (S$55m) and PropNex Ltd ($60m). The outlook for local companies is still positive.

Singapore companies that listed on the SGX had higher funds raised and profitability than those listed overseasThe most popular exchange outside of the region is Hong Kong, where S$2.96 billion was raised by Singapore companies over the last five years. However, the average cross-border IPO funds raised in 2018 is lower than the average funds raised by companies in their domestic exchanges within Southeast Asia.

No Company Mainboard/ Catalist

Date of listing

Amount Raised (S$’mil)

Price Earning

Ratio

Latest profit

(S$’mil)

Industry Country of Operations

1 SLB Development Ltd Catalist 20-Apr-18 54.74 9.79 19.28 Real Estate Singapore

2 Asian Healthcare Specialists Limited

Catalist 20-Apr-18 10.79 127.8 0.44 Life Sciences and Health Care

Singapore

3 Hyphens Pharma International Limited

Catalist 18-May-18 15.6 10.4 6.09 Life Sciences and Health Care

Singapore

4 PropNex Limited Mainboard 2-Jul-18 60.13 12.3 18.89 Real Estate Singapore

5 Koufu Group Limited Mainboard 18-Jul-18 74.35 13 26.82 Consumer Business

Singapore

6 DLF Holdings Limited Catalist 25-Jul-18 4.26 8.3 3.37 Consumer Business

Singapore

7 Synagie Corporation Ltd Catalist 8-Aug-18 11.61 NA -3.38 Consumer Business

Singapore

8 Vividthree Holdings Ltd Catalist 25-Sep-18 12.95 24.51 2.71 Consumer Business

Singapore

9 Medinex Limited Catalist 7-Dec-18 7.5 25 0.95 Life Sciences and Health Care

Singapore

10 Biolidics Limited Catalist 19-Dec-18 7.7 NA -7.21 Life Sciences and Health Care

Singapore

Average 25.96 6.80

In 2018, the average funds raised by Singapore companies listed in Hong Kong was S$18 million per IPO, while the average funds raised by Singapore companies listed on the SGX was S$26 million per IPO.

Most Singapore companies that chose to list on SGX are profitable.

14


What industries do we expect to see in future IPOs?

The F&B sector continues to experience exceptional growth. This can be attributed to several factors such as changing consumer demographics, rise in disposable income and growth of retail and distribution network.

No Company Name Amount raised (S$’m)1 Sasseur REIT 421.602 SLB Development Ltd 54.74

Total 476.34Total amt raised in 2018 730.23

Real Estate IPOs 2018

The sector consist of companies from pharmaceuticals, health care providers, and health care equipment and supplies. As of 2018, the health care sector has seen a total of 32 companies, 2 REITs and 1 Trust.

No Company Name Date of listing Amount raised (S$’mil)

Offer price (S$)

Share price (31-Dec-18)

% change

1 TalkMed Group Limited 30-Jan-14 21.03 0.2 0.58 190%

2 QT Vascular Ltd. 29-Apr-14 55 0.28 0.007 -98%

3 ISEC Healthcare Ltd. 28-Oct-14 19.6 0.28 0.255 -9%

4 UG Healthcare Corporation Limited 8-Dec-14 6.19 0.22 0.215 -2%

5 Singapore O&G Ltd. 4-Jun-15 10.9 0.25 1.4 460%

6 iX Biopharma Ltd. 22-Jul-15 30.13 0.46 0.17 -63%

7 HC Surgical Specialists Limited 3-Nov-16 8.1 0.27 0.6 122%

8 Aoxin Q & M Dental Group Limited 26-Apr-17 11.4 0.2 0.22 10%

9 Clearbridge Health Limited 18-Dec-17 24.64 0.28 0.167 -40%

10 Asian Healthcare Specialists Limited 20-Apr-18 10.79 0.23 0.26 13%

11 Hyphens Pharma International Limited 18-May-18 15.6 0.26 0.195 -25%

12 Medinex Limited 7-Dec-18 7.5 0.25 0.27 8%

13 Biolidics Limited 19-Dec-18 7.7 0.28 0.22 -21%

Total 228.58 Average 42%

Healthcare IPOs from 2014 to 2018

From 2014 to 2018, there have been 13 health care companies IPOs, performing at an average 42% share price (above water).

The Real Estate listings accounted for 65% of total amount raised on SGX in 2018.

F&B IPOs from 2014 to 2018

No Company Name Date of listing PE at IPO IPO Market Cap (S$’mil) Amount raised (S$’mil)1 Jumbo Group Limited 9-Nov-15 8.6 160.33 40.082 Katrina Group Ltd. 26-Jul-16 9.6 48.62 7.523 No Signboard Holdings Ltd. 30-Nov-17 13.9 129.47 354 Kimly Limited 20-Mar-17 12.02 288.7 43.455 RE&S Holdings Limited 22-Nov-17 11.6 77.88 11.886 Koufu Group Limited 18-Jul-18 13 349.75 74.35

Average 11.45 175.79 35.38

In the same period, six F&B companies listed had an average price earnings ratio at IPO of 11.45, with sizeable funds raised and market capitalisation.

15


Developments in the Singapore capital markets in 2018

SGX developments Impact

1 On 11 January 2018, there was a proposal to remove quarterly reporting and if retained, SGX proposed to relax requirements for companies with smaller market capitalisation by:

– Increasing market capitalisation threshold from S$75m to S$150m (i.e. only 38% of companies listed on SGX will have to do quarterly reporting); or

– Adding an ownership condition to have at least one controlling shareholder holding a minimum 15% to a S$150m threshold.

– Attracts more companies to list. – Relatively less costly for small companies. – Provides a breather for small and mid-cap companies and allows them to redirect human resources to other firm activities.

However, – Protection of minority shareholders is a concern as they may receive less information.

As at 31 December 2018, this is still in the proposal stage.

2 Companies with dual-class shares (DCS) structures are able to seek primary listing on SGX starting from 26 June 2018.

– Strikes a balance between supporting high-growth companies and having safeguards to mitigate governance risks.

– Broadens the range of investment options for investors and adds vibrancy to SG’s capital markets.

3 On 9 November 2018, the Singapore Exchange Regulation (SGX RegCo) issued a Consultation Paper on Proposed Amendments to Voluntary Delisting Regime.

SGX RegCo proposes to disallow offerors and parties acting in concert from voting on voluntary delistings; and the approval threshold required for the voluntary delisting to proceed be amended to a majority of 50% from 75% shareholders.

– Protects interests of minority shareholders.

4 In early November 2018, SGX signed 2 Memorandums of Understanding (MOU) with Zhejiang Entrepreneurs Association (ZJEA) and China Futures Association (CFA).

– Fosters greater collaboration in developing Singapore’s capital market opportunities for China enterprises.

5 CapBridge 1Exchange gets MAS nod to operate as one of Singapore’s first private securities exchanges

Another playing field has come about with Singapore’s first private securities exchange 1Exchange launched in November 2018. Strategic collaboration with CapBridge sees Deloitte being the first to offer professional services solutions to clients of newly launched Private Exchange “1X”.

– It provides private companies the ability to trade in their simplified securities by leveraging technology to create simple, regulated, and cost-effective liquidity options for both private companies and investors. This presents another option for regional and global companies to raise capital.

6 SGX signed a new strategic cooperation agreement with China-Singapore (Chongqing) Demostration Initiative on Strategic Connectivity (CCI) Administration Bureau on 8 January 2019.

– Supports Chongqing in catalysing business opportunities under CCI.

– Builds on existing partnerships between SGX and State-Owned Assets Supervision and Administration Commission (SASAC) and Financial Affairs Office (FAO) to help companies access international capital funding for business expansion.

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Grant for Equity Market Singapore (GEMS)

The Monetary Authority of Singapore (MAS) announced that a Grant for Equity Market Singapore (GEMS) will be introduced in early 2019. One of the components is the listing grant which will aid enterprises that wish to list on SGX, including foreign enterprises. This listing grant, with its different funding tiers, would certainly be one of the factors that will be considered and utilised by eligible candidates across a range of sectors to list on SGX. This grant can, at the very least, help to defray the initial listing fees on the SGX. Listing related expenses include underwriting, placement, audit, legal, research and SGX listing fees.

Note: With effect from 14 Feb 2019, valid for 3 years

70% of qualifying costs, up to $1m

20% of qualifying costs, up to $500k

20% of qualifyingcosts, up to $200k

Companies innew tech

sector

Companies inhigh growth

sectors

All sectors

Qualifying costs pertain to: 1. Singapore-based professional fees 2. All underwriting placement fees if >50% of such fees are attributable to Singapore-based entities

New tech sector:• Consumer Digital Technologies• Financial Technologies• Gaming Services & Peripherals• On-Demand Services

High growth sectors:• Advanced Manufacturing• Digital Cluster• Healthcare• Hub Services• Logistics• Urban Solutions & Infrastructure

IPO market capitalisation > $300m

Grant for Equity Market Singapore

(GEMS)

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Key Highlights for Singapore IPO market in 2018

Are we still attractiveto foreign issuers?

Is our local exchange past our peak compared to other bourses?

What is the outlook for 2019?

What industries do we expect to see in future IPOs?

Health care and F&B stocks tend to outperform other IPOs and we can expect more IPOs from these sectors.

Depending on the stability of the global economy, we can expect the IPOs that have been delayed in 2018 to seek listing in the first quarter of 2019, and potentially some IPOs from the REITs and also from the healthcare and F&B sectors. 2019 will see increased vibrancy in the markets when some of SGX’s initiatives in 2018 come to fruition, including the anticipation of the first dual class shares listing since the announcement earlier this year

Tay Hwee Ling, Global IFRS and Offerings Services Leader, Deloitte Southeast Asia and Singapore

In 2018, Singapore companies that listed on the SGX had higher funds raised and profitability than Singapore companies that listed overseas. The average amount raised by each Singapore company listed in Hong Kong was S$18 million as compared to S$26 million on SGX.

Singapore’s reputation of being politically stable with strong governance and having a solid G-to-B collaboration culture with the government supporting Singapore businesses through various grants and incentives, such as the latest Grant for Equity Market Singapore (GEMS) has helped make the listing environment in Singapore a positive one.

Yes. The highest funds raised was by Sasseur REIT from China at S$422 million. The total foreign listings from 5 IPOs accounted for 64% of the total funds raised.

$$SGXOverseas exchange

$$

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Contact us

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

Southeast Asia and SingaporeTay Hwee LingLeader, Global IFRS and Offerings [email protected]+65 6216 3258

CambodiaKimleng [email protected]+855 23 963 788

IndonesiaBing [email protected]+62 21 5081 8200

MalaysiaWong Kar [email protected]+60 3 7610 8820

ThailandMeakhaamnouychai [email protected]+66 2034 0139 ext 40139

GuamVensel Lee [email protected]+1 671 646 3884

PhilippinesBaltazar [email protected]+63 2 581 9000 ext 011

VietnamLe Dinh [email protected]+84 8391 00751 ext 6226

LaosSurachutikarn [email protected]+66 2034 0114 ext 40114

MyanmarCho [email protected]+1 671 646 3884

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Documents

Brochure / report title goes here | Section title goes here...Vietnam In Vietnam, the IPO capital market raised a total of S$6.2 billion in 2018 alone, far exceeding the funds raised