EQDP puts SGX listings back on the radar for Singapore startups

[SINGAPORE] Startups in Singapore are increasingly considering a listing on the Singapore Exchange (SGX) as a route providing a viable exit option, as efforts to revive the equities market start to reshape how founders and investors view public listings.

The S$6.5 billion Equity Market Development Programme (EQDP), aimed at deepening liquidity and broadening investor participation in Singapore equities, has prompted some startups to re-evaluate an exit route that used to be overlooked because of the market’s thin trading volumes and low valuations.

Before the launch of the EQDP, consumer brand Stryv used to consider a trade sale or a management buyout as its main exit options.

Roy Ang, its CEO and co-founder, told The Business Times: “The introduction of the EQDP has definitely added another scenario for us because of the increased liquidity in the market. It’s now a viable option for us as well.”

Stryv sells consumer electronics ranging from hairdryers to air purifiers. Its parent company Evo Commerce acquired Singapore appliance brand Sterra in March.

Similarly, automotive platform Motorist was weighing its options, which included strategic partnerships, private capital and an eventual listing, either here or overseas.

But prior to the EQDP, a Singapore listing was “harder to justify”, said its CEO Angela Poh. This was especially because of the size of the market, she added, noting that the company also “had concerns about post-listing liquidity and valuation”.

Motorist, which operates in Singapore, Malaysia, the Philippines, Thailand and Vietnam, now considers an SGX mainboard listing among its longer-term plans.

Poh said the EQDP is regarded as a signal of sustained commitment to build depth in the local market. “For a company like ours, that reduces the risk of listing and then being overlooked.”

The e-Conomy SEA 2026 report by Google, Temasek and Bain & Company noted that proceeds from initial public offerings in South-east Asia more than doubled to US$3.1 billion in the first half of 2026, from US$1.4 billion in H1 2025.

“Healthier IPO markets provide clearer exit routes,” said Fock Wai Hoong, head of Asia-Pacific (excluding China and India) at Temasek Global Investments.

Historically, exit options for startups in Singapore have been either a trade sale, through which the startup is acquired by another company, or a management buyout.

Startups such as Grab and Sea took the US public markets route with varying degrees of success, but overseas listings have not been a practical route for smaller startups.

There are already examples of startups choosing the local market. These include Toku, artificial intelligence-enabled customer platform, which listed on SGX’s Catalist board in January.

Institutional interest

Improved market liquidity under the EQDP has also strengthened institutional investor interest in IPOs, which has potentially made it easier for startups to secure funding during book building, said Lim Der Shing, partner at angel investment network AngelCentral.

“So I would say it is a major factor as startups thinking about listing here have more institutional investors willing to cut cheques,” he said.

For Motorist, the EQDP’s arrival has changed how the company weighs its exit options.

As more institutional capital is deployed into Singapore equities, including small and mid-caps, an SGX listing has become a realistic option on the table, said Poh.

The company has also attracted interest from capital market participants as its revenue and profitability improve.

Financial statements pulled from data platform Handshakes indicate that the platform’s profits have more than doubled, from S$163,805 in 2023 to S$374,261 in 2024.

Its revenue has also grown, from S$9.5 million in 2023 to S$13.1 million in 2024.

“With our profit having more than doubled year on year, a listing would be on the back of real earnings rather than a growth story alone,” said Poh.

Hurdles remain

Despite the growing interest, founders and investors warned that improved liquidity alone would not be enough to make SGX an attractive listing destination.

Representatives from startups who spoke to BT said that one area where improvement is needed is post-listing research coverage of the companies.

Poh flagged this as key to ensuring that mid-sized companies such as Motorist remain visible to investors after an IPO.

At the moment, the Grant for Equity Market Singapore Scheme (Gems) backed by the Monetary Authority of Singapore offers incentives to expand research coverage of pre-IPO and newly listed companies.

Valuations are also key, and would help to persuade fence-sitters such as Stryv to consider a listing on SGX. These valuations should reflect a company’s growth profile and regional reach as well, said Poh.

“Ultimately, (valuations) comes down to deeper liquidity and a broader investor base,” she added.

Styv’s Ang said that he would like to see a greater diversity of strategic investors coming into the market. “Having funds come in from other markets that we previously would not have had access to would make it more attractive.”

He also pointed to the importance of further streamlining the listing process. While SGX has made efforts in this area, additional improvements would make the exchange more appealing to growing business, he said.

Listing and ongoing compliance costs are another consideration.

Poh called for “a listing process and ongoing compliance costs that suit growth companies, not just mature ones”.

That said, Gems already offers grants to help companies defray listing costs by co-funding up to 70 per cent of eligible expenses of a mainboard listing, with a cap of S$1 million for companies with market capitalisation of below US$1 billion, and a cap of S$2 million for companies with market capitalisation of S$1 billion and above.

In the past year, efforts to encourage startups to consider SGX listings are also gaining traction within the broader investment community, with some champions emerging within the ecosystem.

In March, angel investor Lim wrote on his blog about the potential for local listings, and introduced founders to SGX and sponsors in his portfolio so they can understand and evaluate this route.

The response has been encouraging, he said.

“So far, the feedback has been good, and we have four to five firms who now understand this option much better and are considering listing locally as a mid-term option.”