A TOTAL of nine companies have already received investments from two funds that were established in 2022 to support high-growth enterprises to raise capital in Singapore’s public equity market.
Minister for Trade and Industry Gan Kim Yong said on Friday (Feb 16) that the funds – Anchor Fund @ 65 and Growth IPO Fund – are “working closely with their portfolio companies to prepare them for IPO (initial public offering) when the opportunity arises”.
This includes advising on the listing requirements of the Singapore Exchange (SGX), driving growth and profitability, and facilitating engagements with investment banks and market makers.
Gan was responding to a parliamentary question from Member of Parliament Yip Hon Weng on the effectiveness of the S$1.5 billion Anchor Fund @ 65 and S$500 million EDBI Growth IPO Fund in attracting high-growth companies to list on SGX.
Yip also asked whether the funds can be “optimised to incentivise early-stage listings and boost SGX’s IPO appeal”.
In a written response, Gan noted that the last two years have been “more challenging for equity markets globally as a result of inflationary pressures, and the high interest rate environment”.
He pointed out that the total number of IPOs and IPO proceeds globally has declined in 2023, and equity markets in Singapore and the region have been similarly affected.
SGX has faced muted IPO activity in recent years, with most of the listings coming from the junior Catalist board. Last year, six companies made their debut on the Catalist board, raising just S$46.9 million.
In 2022, the exchange welcomed 11 listings, eight of which were on the Catalist board. The three mainboard listings that year were all special purpose acquisition companies’ IPOs. Two of the three have since said they will liquidate without a business combination, while the third – Vertex Technology Acquisition Corp – completed a business combination with live-streaming platform 17Live last year.
Singapore announced in September 2021 a package of initiatives, including the establishment of both funds, to support high-growth enterprises to raise capital in Singapore’s public equity market and broaden Singapore’s proposition as a financing hub.
Anchor Fund @ 65 was established by the Singapore government and investment company Temasek, and it will help promising high-growth enterprises raise capital through public listings in Singapore. It is managed on a commercial basis by 65 Equity Partners, a wholly owned investment platform of Temasek.
The Growth IPO Fund was established by EDBI, the investment arm of the Singapore Economic Development Board, and its aim was to help late-stage private enterprises grow and prepare for an eventual public listing in Singapore.
“The efforts of the funds complement a broader suite of initiatives to improve the attractiveness of SGX for IPOs,” Gan said, noting this includes the Monetary Authority of Singapore’s Grant for Equity Market Singapore (GEMS) scheme, which helps to defray listing costs and increase research coverage of SGX-listed stocks.
