Dear readers, on 20 May 2025, Contemporary Amperex Technology Co. Ltd (CATL), a global leader in electric vehicle batteries and energy storage solutions, made a significant milestone by debuting on the Hong Kong Stock Exchange.
This event marked not only the largest initial public offering (IPO) of the year for Hong Kong but also one of the most substantial IPOs worldwide for 2025 to date. The listing generated net proceeds of HK$35.33 billion, equivalent to approximately US$4.5 billion, underscoring the company’s robust investor confidence and the strategic importance of this listing in the global financial markets.
The success of CATL’s IPO highlights Hong Kong’s continuing status as a premier international financial hub, especially in the technology and renewable energy sectors. The massive influx of capital reflects investor enthusiasm for innovative companies that are shaping the future of sustainable transportation and energy solutions. CATL’s listing not only elevates its corporate profile but also signals strong market appetite for high-growth, high-tech enterprises. Moreover, it underscores the importance of the Asian markets in the global supply chain of electric vehicle components and energy storage systems.
In contrast to the vibrant activity seen in Hong Kong, the trading environment here on the Singapore stock markets appears comparatively subdued. So far this year, excluding any delisting activities, there has been only one notable IPO on the Singapore Exchange (SGX)—that of Vin’s Holdings. While modest in comparison, this limited activity does not necessarily reflect a lack of potential but may indicate cautious investor sentiment amid global economic uncertainties and regional geopolitical tensions.
Interestingly, despite the current modest IPO activity, there has been increasing discussion and speculation about more overseas companies choosing to list or spin off their entities on the SGX. This trend signifies Singapore’s growing reputation as a strategic listing venue for international firms seeking access to Asian capital markets. The country’s stable political environment, transparent regulatory framework, and strategic location make it an attractive destination for foreign companies looking to expand their investor base.
One of the most anticipated IPOs for SGX this year involves Japan’s Nippon Telegraph and Telephone Corporation (NTT). It has been reported that NTT plans to transfer six of its data centre assets to a proposed Singapore-listed REIT called NTT Data Centre Reit (NTT DC Reit). The deal is expected to be valued at approximately US$1.6 billion. This move is seen as a strategic effort by NTT to unlock value from its data centre assets while providing investors with exposure to the rapidly growing digital infrastructure sector in Asia.
In my opinion, the proposed listing of NTT on SGX could serve as Singapore’s answer to CATL’s successful debut in Hong Kong. While CATL’s IPO exemplifies the capital-raising power of raising funds in a vibrant, internationally oriented market like Hong Kong, NTT’s potential listing on SGX underscores Singapore’s evolving role as a hub for high-profile international listings, especially in the digital and infrastructure sectors. Such listings can bolster Singapore’s reputation as a gateway for Asian and global companies seeking to access diverse pools of capital.
Furthermore, these developments suggest an increasing confidence among multinational corporations to leverage Singapore’s financial infrastructure for strategic growth and capital deployment. As Singapore continues to position itself as a key financial centre in Asia, we may see more international companies considering SGX as their preferred listing platform, especially as the market matures and regulatory frameworks evolve to accommodate complex cross-border transactions.
In conclusion, while Hong Kong’s recent IPO success with CATL underscores its dominance in the regional and global capital markets, Singapore is steadily building its own reputation as a hub for innovative and strategic listings. The upcoming NTT listing and other potential foreign listings are promising signs of Singapore’s increasing relevance in the global financial landscape. As investors and companies alike look for new opportunities, Singapore’s role as a premier listing destination is poised to grow, complementing Hong Kong’s established position and fostering a more diverse and dynamic Asian capital market ecosystem.