Singapore sets up new fund to support businesses to conduct IPOs

Illustrative image. (Photo: AFP/VNA)

Singapore (VNA) - Singapore's move to launch a new fund to support startups can help businesses conduct initial public offerings (IPOs), experts have said.

However, it could take years before the Singapore stock exchange can become a hub for tech stock listings in the region, they added.

Despite being positioned as one of Asia's leading financial hubs, Singapore has seen a decline in the number of listed companies over the past decade and has also failed to attract a large number of IPOs.

However, market participants argue that the establishment of two funds with a combined capital of 2 billion SGD (1.5 billion USD) to support corporate fundraising and IPOs, along with enabling listed special purpose acquisition companies (SPACs) will attract many startups to list in Singapore.

According to financial data analysis company Refinitiv of the UK, from the beginning of the year to September 16, only three companies have listed on the Singapore Exchange and raised 239 million USD, not yet half of the same period last year and the lowest level in six years.

Meanwhile, the amount raised on the Malaysia stock market reached 531 million USD, and 2.3 billion USD each on the Indonesia and Philippines stock markets, while the Thai market raised 3.5 billion USD.

In recent years, Singapore's major corporations have conducted overseas listings. Typically, the e-commerce and game group Sea was listed in the US in 2017 and is being valued at 182 billion USD./.