Yantoultra
SINGAPORE (Reuters) - Five companies from mainland China or Hong Kong are planning IPOs, dual listings or sharing positions in Singapore over the next 12 to 18 months as Chinese companies look to partially expand Southeast Asia in the face of four sources, four sources said.
The companies include a Chinese energy company, China Healthcare Group and Shanghai-based biotech group, who said there is a direct understanding of the matter but refuses to name or name the company because the plan is not completed.
These listings will provide a driving force for Singapore Exchange Limited (SGX), which has been working to attract large listings and auxiliary transaction volumes despite being a popular yield venue such as real estate investment trusts.
According to its website, SGX held only four initial public offerings in 2024. By comparison, its competitors' regional exchanges and clearing limited companies recorded 71 new companies listed.
Jason Saw, head of investment banking group at CGS International Securities, said Chinese companies hope to take advantage of Singapore's deals when they are engaged in a trade war with the United States, while they are engaged in a trade war with the United States.
U.S. President Donald Trump imposed a 145% tariff on imports of Chinese goods, and China raised tariffs on U.S. goods to 125%, and then both sides agreed to a 90-day pause last weekend. However, uncertainty remains, given the time constraints and the unpredictability of the Trump administration.
Saw said inquiries about the list of SGX “driving the roof” after Trump’s increased trade action against China.
"In the next few years and decades, the portal from China to the world will become even more important," said Pol de Win, head of global sales and origins at SGX.
"Whether it is trade (or) business activities from China to the outside world, Singapore is an important portal, and listing in Singapore is an important part of it." De Win did not mention the listing plans of Chinese and Hong Kong companies.
"Increasing interest"
According to SAW, CGS International is the unit of state-owned broker Galaxy Securities, which works with at least two China-based companies to be listed as early as this year’s SGX. He declined to name the companies.
Some mainland Chinese and Hong Kong companies can raise about $100 million through Singapore’s main list, one of the sources said.
SGX is usually not the first choice for Chinese companies focusing on the offshore market debut. Most people prefer Hong Kong because of Beijing’s support and a large number of institutional and retail investors who are more familiar with Chinese brands.
Capital market advisers said Beijing’s efforts to establish links with Southeast Asia have encouraged some Chinese companies to increase their operations in the region amid escalating tensions with Washington.
Singapore's listing plan includes a 20% major listing tax discount after city states announced measures to strengthen their stock markets in February and vowed to announce the next set of measures in the second half of 2025.
Ringo Choi, leader of EY Asia Pacific IPO, said the moves would increase interest in the local IPO market, adding that Singapore's "political stability and neutral stance" on geopolitical affairs should attract companies.
However, Singapore cuts off the gap between Singapore's fair listing in the near future due to the relatively conservative investors and stricter listing requirements.
"You need to make it easier for companies, especially technology companies, to list them," said the managing director of a Singapore-based multinational software company.
“Most of the startups in the region are headquartered in Singapore, so this should be where they list.”
(Reported by Yantoultra Ngui; Edited by Sumeet Chatterjee and Mark Potter)