[SINGAPORE] Interest in listing on US exchanges has surged among Singapore companies, with 13 initial public offerings (IPO) in H1 2025, nearly thrice the number over the same period last year.
Yet, nine out of the 13 companies saw their share prices dipping below their initial listing prices, including one that has fallen by nearly 90 per cent.
Looking at Nasdaq’s IPO calendar, The Business Times counted 13 Singapore-based companies that launched their IPOs in the US in the first six months of this year. This was almost treble the five listings in H1 2024.
The companies – 11 on Nasdaq and two on NYSE American – operate in various sectors including energy, healthcare, finance and technology.
Their market capitalisation on Friday (Aug 8) ranged from US$8.2 million to US$295.4 million, with a median of US$102.8 million.
Of the nine companies that are now trading below their offer prices, Antalpha Platform Holding – a fintech company – recorded the smallest decline of 4.5 per cent, down at US$12.22 on Friday.
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Maritime digital technologies provider iOThree suffered the largest loss of 89.8 per cent, closing at US$0.41 on Aug 8.
Among the four companies that have seen a stronger post-IPO performance, Smart Digital Group – a provider of digital marketing and Internet media services – recorded the largest gains of 154.3 per cent, reaching US$10.17.
Small fish, big pond
Analysts whom BT spoke to pointed to sector mismatch, small market capitalisation and limited publicity as some of the key reasons behind the weaker post-IPO performance of Singapore companies in the US, despite strong gains in the Nasdaq Composite Index.
DBS Group Research analyst Foo Fang Boon said that the Nasdaq’s rally was led by mega-caps such as Nvidia, Meta and Microsoft as artificial intelligence (AI) remains the dominant theme and offers earning visibility.
However, many recent Singapore listings are from traditional sectors that lack the AI and technology appeal, leading to lower investor interest, he added.
Head of OCBC Investment Research Carmen Lee attributed the underperformance of Singapore companies to their small market capitalisations.
“This is in line with the broader market. The benchmark S&P 500 Index is up 7.6 per cent year to date (as at Aug 7), but the smaller-cap index (Russell 2000) is down 0.7 per cent for the year,” she said.
Jimmy Seet, PwC Singapore’s capital markets partner, described the Singapore listings in the US as “small fish in a big pond”, which tend to go unnoticed by institutional investors unless they have a robust investor relations strategy or meaningful operational presence in the US.
Amid weak prospects for Singapore companies on US exchanges, MoneyHero Limited and Trident Digital Tech Holdings – both listed on Nasdaq before 2025 – received notices in the first half of this year for breaching the exchange’s minimum bid price rule. This was after their shares closed below US$1 for over 30 consecutive business days.
The two firms had regained compliance by July.
US remains attractive market
Despite the mixed performance of past Singapore IPOs in the US, companies still chose to list there in H1 2025 due to several reasons, analysts said.
Foo said that listing aspirants are drawn to the perceived advantages of higher trading valuations, access to deep liquidity and positive reception towards high growth stocks.
“However, there is no guarantee the aforementioned factors will come into play, as seen from the market’s mixed responses (to the Singapore IPOs in the first half of this year),” he added.
Stephen Bates, partner and head of deal advisory at KPMG in Singapore, noted that a listing in the US improves companies’ brand credibility, which is “instrumental” in raising capital, attracting talent and entering new markets for high-growth or tech-driven players.
“Additionally, there may be a degree of herd mentality at play,” said Seet, observing that a few Singapore firms listing in the US might encourage more to follow suit, despite evidence of mixed performance.
EY’s Asean IPO leader Chan Yew Kiang noted that in H1 2025, factors such as elevated interest rates and US tariff announcements have introduced uncertainties and dampened IPO activity in Singapore.
Amid the uncertainties, most Singapore issuers chose to list on US exchanges, he added.
Why US, not Asia
In the first half of 2025, one Singapore company – biotech startup Mirxes – listed on the Hong Kong Stock Exchange (HKEX). Its shares closed at HK$32.86 on Friday, up 41 per cent from the IPO price of HK$23.30.
Only a single firm launched its IPO on the Singapore Exchange (SGX) in the first half – automotive group Vin’s Holdings, which closed at S$0.285 on Friday, slightly below the IPO price of S$0.30 in April.
On why Singapore issuers perceive regional markets as less attractive than the US, Seet said that regional exchanges – such as the Stock Exchange of Thailand – traditionally cater more to local companies.
In contrast, US investors are more receptive to international listings and more willing to engage with companies from diverse markets, said Bates.
He added that international visibility tends to be limited for markets closer to Singapore, whereas “US listings offer strong visibility even for small-cap IPOs, which can be critical for companies seeking to build international recognition”.
Despite the low uptake among Singapore issuers, analysts highlighted the appeal of HKEX and SGX as listing venues.
“Companies that look to expand or reinforce their presence in mainland China would find it compelling to list in Hong Kong,” said Chan.
Seet noted that Hong Kong led global IPO fundraising in H1 2025 with nearly US$14 billion raised, outpacing even Nasdaq.
As for SGX, Foo expects more companies to consider it as a potential listing venue, citing reasons such as strengthening IPO momentum, the Monetary Authority of Singapore’s (MAS) policies to revive the equity market, and Singapore’s stability amid global volatility.
Specifically, the central bank’s S$5 billion Equity Market Development Programme could support the continued outperformance of small-mid caps relative to large-cap stocks. This may encourage more small-mid cap listings in Singapore.
Seet added that MAS’ proposed reforms could “bolster interest in the SGX, particularly for local companies looking for a listing venue more closely aligned with their operational footprint”.
