Treading on eggshells: IPOs crash by 75% in 1H14

Penny-pinching firms cautious on lukewarm ECM market.

Money is definitely not going around in the first half of 2014. According to Thomson Reuters, IPOs and follow-on offerings that listed in the SGX amounted to US$1.7 billion in 1H14, a 75.0% significant drop in proceeds as the number of new issues dropped 51.9% compared to the first half of 2013.

This is coupled with a steady decline in the country’s equity capital market (ECM). Singapore-listed equity and equity-related transactions registering a 42.4% decline in proceeds alongside a 40.3% drop in number of new issues compared to the first half of 2013.

"This is the slowest first half period since 2012 (US$1.4 billion). Follow-on offerings totaled US$945.7 million, down 76.9% from the first half of 2013, and the lowest first half period since 2008 (US$878.8 million),” noted Thomson Reuters.

Here’s more from Thomson Reuters:
During the second quarter of 2014, ECM listings in Singapore stock exchanges reached US$4.3 billion, a 67.1% sequential increase from the first quarter of 2014 but declined 19.9% in proceeds from the second quarter of 2013.

Proceeds from initial public offerings that listed in Singapore stock exchanges reached US$773.6 million this year, a 72.1% decline from the comparative period last year.

This is led by PACC Offshore Services Holdings Ltd's IPO which raised US$375.5 million, the largest IPO in Singapore so far this year, with Bank of America Merrill Lynch, DBS Bank Ltd. and Oversea-Chinese Banking Corp. as joint book runners.

Based on all Singapore-domiciled ECM issuance, DBS Group Holdings currently ranks as the top book runner for equity, and equity-linked deals issued by Singaporean companies with 19.1% market share worth US$268.1 million in related proceeds. JP Morgan slips to 9th spot (tied with RHB) from its top spot a year ago.

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