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SINGAPORE: On paper, the Singapore Exchange (SGX) appears overshadowed by red-hot initial public offering (IPO) markets across Asia in 2026. But analysts say the apparent gap masks a genuine turnaround taking place on the Singapore bourse.<\/p>\n
Expecting more IPOs to come online in the second half of 2026, they said the measures rolled out since 2025, such as the equity market development programme and streamlined listing rules, will get things moving.<\/p>\n
\u201cWe have to keep looking at it and keep our foot on the pedal because we\u2019re trying to start an engine on a cold start. The engine hasn\u2019t been moving,\u201d said DBS\u2019 global head of investment banking Clifford Lee.<\/p>\n
Asian exchanges like Hong Kong and Malaysia are having a bumper year so far. Malaysia topped Southeast Asia\u2019s IPO market in the first half of 2026, raising US$1.3 billion (S$1.65 billion) across 36 listings, including Sunway Healthcare Holdings.<\/p>\n
Sunway Healthcare in Malaysia and UI Boustead real estate investment trust in Singapore made up two of the three major listings in Southeast Asia that each raised more than US$500 million in the first half of 2026.<\/p>\n
In the first half of 2026, Hong Kong hosted 85 IPOs, raising about HK$210.4 billion (US$26.8 billion). This includes Chinese printed circuit board manufacturer Victory Giant Technology\u2019s listing, which sits among the world\u2019s largest IPOs this year.<\/p>\n
In July, Hong Kong\u2019s stock exchange also made it easier for companies to go public, lowering the thresholds for firms with dual-class share structures and broadening access to confidential IPO filings.<\/p>\n
Against this backdrop, the SGX has logged eight listings so far this year.\u00a0<\/p>\n
Analysts said that despite this comparison, Singapore’s bourse is having one of its best years not just in terms of the number of IPOs relative previous years, but also the value of the listings.\u00a0<\/p>\n
Earlier reports said SGX is on track for close to 30 listings in 2026, following a record year for IPO proceeds in 2025.<\/p>\n
Everything is in place for Singapore to attract more IPOs, said Mr Lee, pointing to Singapore\u2019s tax regulations, transparency and its triple-A credit rating.<\/p>\n
Noting that SGX had several new IPOs and placements in 2025, Mr Lee said that if the market holds, Singapore should have multiple times last year’s IPO issuances.<\/p>\n
Singapore saw four to five listings per year in recent years, with new listings only starting to pick up from 2025, said OCBC\u2019s head of equity research Carmen Lee.<\/p>\n
Based on Singapore\u2019s historical trends, 2025 and 2026 are considered “strong” years compared to the low IPO numbers from 2022 to 2024, said Ms Lee. SGX recorded four IPOs in 2024, the lowest in over a decade.<\/p>\n
\u201cWe see this as a healthy trend and interest should pick up if interest in small-mid cap stocks continues,\u201d she added.<\/p>\n
Assistant Professor Goh Jing Rong, who teaches economics at the Singapore Management University (SMU), said Singapore\u2019s listings are not slowing down.<\/p>\n
The Singapore IPO market is characterised by low-count, high-value listings, he noted.<\/p>\n
Listings in Singapore in the first half of 2026 already raised US$868 million across just five companies \u2013 UI Boustead real estate investment trust, Toku, The Assembly Place, Kin Global and JustCo Holdings, he added.<\/p>\n
But Singapore has room to improve on aftermarket performance, said Asst Prof Goh, noting that the 2026 listings on SGX have not delivered a sustained post-debut rally.<\/p>\n
\u201cThis is one key metric to look at, because typically a weak aftermarket performance is one key factor that deters future issuers.\u201d<\/p>\n
UOB\u2019s head of equity capital markets Mark Wee said the Singapore market has benefited from coordinated and proactive efforts by the Monetary Authority of Singapore (MAS), SGX and the broader industry to deepen and strengthen the equities ecosystem.<\/p>\n
This includes initiatives such as the equity market development programme, he added.<\/p>\n
The S$5 billion programme launched by MAS involves putting money with fund managers focused on investing in Singapore stocks.<\/p>\n
\u201cThese efforts are beginning to yield results, and we remain positive on the outlook for Singapore’s IPO and equity markets,\u201d said Mr Wee.<\/p>\n
Aside from the initiatives to attract capital and fund management activities, Singapore is also well-positioned to leverage several structural trends, including ASEAN\u2019s growth and rising private wealth in Asia, he added.<\/p>\n
The bank is seeing a healthy pipeline of prospective issuers and increasing confidence in Singapore as a capital-raising hub, said Mr Wee.<\/p>\n
In May, Singapore passed laws to allow companies to dual list on SGX and American stock exchange Nasdaq while cutting down on paperwork. SGX had said its planned dual-listing link with Nasdaq could go live in months, with the first listings expected in the second half of the year.<\/p>\n
From Oct 5, the standard board lot size will be reduced from 100 units to 10 units for instruments priced above S$10, up to S$100, giving investors easier access to the Singapore stock market.<\/p>\n
\u201cAside from the measures being put in place, the market timing couldn\u2019t be better,\u201d said DBS\u2019 Mr Lee, noting that with volatility and geopolitical tensions around the world, investors, companies and issuers need to start diversifying.<\/p>\n
From a currency standpoint, the Singapore dollar is very attractive and seen as a safe haven, said Mr Lee.<\/p>\n
\u201cNow, we have a fair bit of liquidity chasing after assets. So the urgency to bring assets and issues into the Singapore stock exchange \u2026 has grown much higher than before.\u201d<\/p>\n
Singapore is an impartial centre and all its regulations are written in English, he added.<\/p>\n
If a business is not heavily anchored in a big financial hub like the US, China or Europe, and it is looking to list in an “impartial place”, Singapore becomes very viable, said Mr Lee.<\/p>\n
This also explains why companies from other countries in Southeast Asia where markets are currently \u201ca bit choppy\u201d are looking to list in Singapore, especially if they are international businesses, he added.<\/p>\n
\u201cWe\u2019re at the beginning of pushing our automobile onto the racetrack after having it not run for many years. It\u2019s moving, it\u2019s on a cold start. The initial steps are encouraging but there\u2019s lots more work to be done.\u201d<\/p>\n
In any case, markets cannot be compared simply based on the volume of listings each year. Analysts highlighted the structural differences between various markets that make them incomparable.\u00a0<\/p>\n
These contrasts cannot be resolved through regulation, they said.<\/p>\n
For example, Malaysia has a large domestic SME base while Singapore\u2019s domestic corporate base is smaller simply because it has a smaller population, said SMU\u2019s Asst Prof Goh.<\/p>\n
\u201cYou cannot simply regulate more listing candidates into existence,\u201d he added.<\/p>\n
Hong Kong has a strong pipeline of mainland Chinese companies, including those that are already listed on the Shanghai or Shenzhen stock exchanges that are seeking an additional Hong Kong listing to access international capital, Asst Prof Goh noted.<\/p>\n
The Straits Times Index is dominated by banks and real estate investment trusts where buyers are income-oriented, not early-stage growth equity companies, which is what Hong Kong is good at listing, he added.<\/p>\n
It would be challenging for Singapore to close the listing volume gap with Hong Kong due to these structural issues. Nevertheless, Singapore still has great potential for quality listings, said Asst Prof Goh, noting the new measures.<\/p>\n
\u201cPersonally, I don’t think Singapore needs to match Hong Kong\u2019s IPO proceeds or listing count,\u201d he added, noting that the scale of Hong Kong\u2019s listings reflects its unique role as the international capital market for mainland Chinese companies, which is not a realistic benchmark for Singapore.<\/p>\n
\u201cHong Kong\u2019s scale may be more spectacular, but is likely more sensitive to policy changes and investor sentiment.\u201d<\/p>\n
Singapore lacks a track record and needs more confidence, Mr Lee said, noting that market openness is not a limiting factor.<\/p>\n
With more confidence from issuers and investors, the IPOs here will benefit from a broader base of investments, which will in turn generate more demand to deepen the market, he added.<\/p>\n
Immediate complaints like the lack of aftermarket support or having liquidity but not enough things to invest in are problems that can be solved once confidence builds up, said Mr Lee.<\/p>\n
\u201cThe whole market is working to ensure that, encourage that, and see what more we can do to broaden the investor base, broaden the participation level to have that depth. Once you have the depth, then you can take your foot off the pedal, the car will run itself.\u201d\u00a0<\/p>\n<\/div>\n
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