Singapore's snares its largest Reit IPO in a decade while HK looks to another bumper year driven by China companies

Business Times

12 hours ago

[SINGAPORE] The past week has seen good news for the Singapore Exchange (SGX), with NTT filing to list a Reit - likely to Singapore's largest in a decade - and software company Info-Tech Systems debuting this week the first mainboard listing in two years.
While SGX's initial public offering (IPO) fortunes may be looking up, it's still a long way off from that of the Hong Kong Exchanges and Clearing (HKEX), which with a new chief executive at the helm is likely to see another bumper year of listings.
Hong Kong IPO boom
Some 40 IPOs are expected in Hong Kong in the first half of this year, based on publicly available information as at Jun 11. These offerings are projected to raise HK$108.7 billion (S$17.7 billion).
This represents a 33 per cent increase in deal volume, and more than 700 per cent in total proceeds compared to the same period the previous year.
PwC expects 70 to 80 companies to list in Hong Kong in 2025, raising an estimated HK$130 billion to HK$160 billion. There were 71 IPOs in Hong Kong last year, which raised a total of HK$87.5 billion.
Of the 36 new listings in Hong Kong so far this year, 21 have traded above their offer prices, according to Bloomberg data. This strong performance has prompted South-east Asian companies to reconsider Hong Kong as a listing venue, noted Jason Saw, group head of investment banking at brokerage CGS International.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
According to a report from EY, Hong Kong accounted for 24 per cent of global IPO proceeds in the first half of 2025. Mega IPOs helped HKEX to secure the top global position by funds raised, reaching US$14 billion.
A key contributor to this surge was the listing activity of A-share companies – companies already listed on mainland Chinese exchanges – and their spin-offs. These deals significantly lifted the average deal size, with proceeds rising more than five-fold year on year.
Another driver was China companies that are turning to Hong Kong to raise funds outside the mainland amid tightening capital controls, Leon Lim, partner at law firm TSMP Law Corporation told The Business Times.
He added that Beijing has facilitated this shift by easing filing requirements for overseas listings.
Hong Kong's pro-market stance, on top of the deep capital pools and access to China that it offers, is also helping to attract listing aspirants, said CGS International's Saw.
Strained US-China relations is also working in Hong Kong's favour, observed TSMP's Lim. 'The current US administration has been slightly unpredictable, and observers are cautioning a repeat of 2023, which saw Chinese state-owned enterprises delisting their US American Depositary Receipts en masse to avoid having to disclose information under rules imposed by the previous Trump administration,' he said.
HKEX allows secondary listings from companies on 'recognised' exchanges such as those in Thailand, Indonesia, Singapore, Saudi Arabia and the United Arab Emirates.
However, mainland Chinese companies typically list in Hong Kong via separate 'A+H' or dual-primary listings. Examples include major Chinese drug maker Jiangsu Hengrui Pharmaceuticals, condiment maker Foshan Haitian Flavouring and Food as well as battery giant CATL.
While the exact number of Hong Kong's current secondary, A+H dual, or dual-primary listings is not publicly disclosed, SGX currently hosts 28 secondary listings -- including names such as Mandarin Oriental, DFI Retail and electric vehicle maker Nio.
Different niches
Singapore and Hong Kong have different strengths, said Carmen Lee, head of OCBC Investment Research. Besides being a natural listing venue for Chinese companies, Hong Kong is strong in sectors such has technology, pharmaceuticals and insurance.
Hence, companies in these industries – especially those looking for the likes of BYD in the electric vehicle sector or China Life in insurance – are more likely to choose Hong Kong as their listing venue, Lee said.
However, companies in other sectors such as banking, real estate or aviation may consider Singapore, where they can find more appropriate benchmarks, Lee added.
Chan Yew Kiang, Asean IPO leader at EY, said SGX has an edge in Reits and could serve as an attractive platform for companies across South-east Asia.
He said: 'Exchanges do compete for quality listings, but they are also complementary in that success will make for a robust IPO and capital market. Alliances between exchanges and secondary listings enable companies to leverage on a broader capital market ecosystem.'
When it comes to secondary listings, TSMP's Lim highlighted Singapore's stable political environment and transparent legal system as key advantages.
He also pointed out that the 2020 imposition of the National Security Law in Hong Kong has raised concerns about the city's autonomy. This means 'any issuer choosing to list its shares in Hong Kong would have to be comfortable with this risk', he noted.
In contrast, Saw emphasised Singapore's appeal, describing it as a 'very transparent and neutral ground' with clear regulations that make it 'easier to access'.
He also noted that SGX offers a faster time to market, backed by its international presence and the ability to attract capital in both US dollars and Singapore dollars, alongside a shorter IPO queue compared to Hong Kong.
With Singapore's status as a hub for industries such as banking and capital markets, EY's Chan believes that these sectors will 'continue to be the cornerstone of being attractive to companies to consider a primary or secondary listing in Singapore'.
Doorway to South-east Asia
Even as SGX is seeking to attract high-growth companies from South-east Asia, HKEX's newly appointed CEO Bonnie Chan has similar plans to boost its global profile by attracting secondary listings from such companies.
EY's Chan sees Singapore as having a clear advantage, describing it as the 'doorway to companies that seek to build brand equity and tap into capital across South-east Asia'.
Growing interest among companies considering a Singapore IPO has been observed by TSMP's Lim. This might be due to recent measures announced by the Monetary Authority of Singapore. He added that many of these businesses operate in sectors with strong investor appeal, and are generally less exposed to global trade tensions and tariffs.
CGS International's Saw said Singapore-based advisers have actively engaged companies not only in South-east Asia but also in North and Central Asia. He added that 'it has been harder to swing South-east Asian companies to the SGX, given the vibrant local market in their respective home bases'.
Still, other regional dynamics could nudge companies towards listing in Singapore. Lim, for instance, observed spillover from Malaysia's active IPO market, where issuers may face stiffer competition and need to work harder to stand out.
'Some of these issuers also view a Singapore listing as a strategic one – which speaks to Singapore's reputation as a well-regulated and reputable global market,' he said.