UltraGreen.ai’s post-IPO performance is an important gauge of investor interest
It represents the kind of high-tech players that investors have been clamouring to see listed on the local bourse
[SINGAPORE] After years of lamenting the lack of high-tech, growth-focused companies on the Singapore Exchange (SGX), investors are getting their wish granted with the upcoming debut of UltraGreen.ai.
The company develops fluorescence-guided surgery technology, offers fluorescence imaging services and supplies indocyanine green dyes used in surgical procedures. More importantly, it represents the kind of high-tech players that investors have been clamouring to see listed on the local bourse.
UltraGreen.ai is laying the foundation for success with a high-powered board. Kwa Chong Seng, former SGX and ST Engineering chairman, is the non-independent non-executive chairman. Hsieh Fu Hua, former SGX CEO and once a director at Grab, is the lead independent director.
The cornerstone investors are equally noteworthy. Temasek-backed 65 Equity Partners is following up on its pre-initial public offering (IPO) investment via the Anchor Fund. Amova Asset Management, abrdn Asia and AIA Investment are also among the institutional names.
The timing of the IPO is also somewhat fortuitous, as the market is riding on the excitement of the Equity Market Development Programme (EQDP). The Monetary Authority of Singapore announced the last of the measures in November, with most of them to be implemented next year.
Already, fund managers are tapping the Financial Sector Development Fund, their new strategies focusing on Singapore stocks beyond the Straits Times Index constituents. These moves are helping to prime UltraGreen.ai’s share price for a good post-IPO performance.
Market players have said that potential listees are following UltraGreen.ai’s trading debut closely, to see if SGX is a suitable listing venue. A robust performance could convert interest into actual listings, kick-starting a flywheel of similar offerings on SGX.
The cherry on top for potential listees could be the SGX-Nasdaq dual-listing bridge, since share price performance is still key. No company wants to list where its shares will be undervalued.
There is a precedent for a good post-IPO performance: MetaOptics, which specialises in metalens manufacturing, is continuing to do well after its Catalist debut.
Since listing in September, MetaOptics’ share price has surged 241.7 per cent to S$0.82 as at Tuesday (Dec 2). The company recently unveiled plans for a Nasdaq listing, which caused another jump in its share price.
These factors complement UltraGreen.ai’s solid business fundamentals – it posted revenue and net profit growth for the last three years, and has a global total addressable market for its dyes and systems.
Long stereotyped as yield hunters looking for dividends from real estate investment trusts and banks, retail investors in Singapore may now have something to excite them.
And without breaking these stereotypes, it will be hard for SGX to attract more of such listings. The issues of market depth and liquidity are what the EQDP seeks to address; what is left is for investors to follow suit.
The hope is that UltraGreen.ai will be the first of many tech listings to come to SGX.
