Tiger Brokers’ market strategist James Ooi said high-profile, quality IPOs attract fund flows and improve investor sentiment.
“Softer post-listing performance may naturally test retail investors’ patience and prompt companies to reconsider their IPO timing and listing strategy,” he said.
Still, he pointed to a steady pipeline of listings ahead, with companies from a wider range of sectors likely to draw investors with different mandates – making for a more vibrant market over time.
Asst Prof Goh said he “would not overstate the impact of a few weak listings”, since a market’s reputation is built over a cycle.
“Having consistent long-term post-listing performance, not first-day pops, is what actually matters,” he said.
A Deloitte report noted that Singapore overtook Indonesia in the region’s IPO rankings for the first half of the year, which it said signalled growing investor confidence and a strong endorsement of market reforms.
UI Boustead REIT’s listing on the SGX in March was the largest in the region for the first six months of the year.
WHAT’S WEIGHING ON NEW LISTINGS
Analysts pointed to a mix of global, local and company-specific factors behind this year’s showing.
Globally, investor interest has skewed toward artificial intelligence-related names, said Mr Ooi.
The broader AI capital expenditure cycle is absorbing “substantial capital” through IPOs and fundraising by listed companies alike, he said, leaving companies in more traditional sectors to compete for a smaller pool of funds.
IPO windows are also sensitive to geopolitics, interest rate expectations and investor risk appetite, Asst Prof Goh added.
Locally, liquidity remains relatively shallow outside large-cap banks, blue-chip stocks and established real estate investment trusts (REITs), he said.
“This means that even if an IPO is well subscribed, aftermarket demand may not necessarily be deep enough to support the price once the stock is publicly traded.”
