Dear readers, I read from the news today that Japan’s Nippon Telegraph & Telephone (NTT) is considering a data-centre Reit listing on SGX next year. The proposed listing could be worth as much as US $1 billion according to the reports.
Singapore stock market is renowned for its many Reits listed on SGX. And there are some who believe if the NTT data-centre Reit listing is to go through, SGX will be in a good position to attract more overseas Reits to list on SGX.
While a large-cap overseas IPO is definitely able to lend some excitement to the rather lacklustre local bourse, let us not get too carried away. If we are to recall, in 2011, one of the largest global port operators, Hutchinson Port Holdings (HPH) Trust, which is also linked to one of Asia’s wealthiest person had its IPO on SGX. HPH Trust had seen its price head south from the offer price of USD 1.01 to current approximately USD 0.146. The trust has also since been removed from the Straits Times Index.
I recalled HPH Trust because I was a shareholder, having bought some shares in the trust at IPO and has since suffered a hefty paper loss margin. The only saving grace is that I did not place too much capital in the trust and that year on year, the trust gave out some dividends which can help offset a little the paper losses which I had. At the HPH AGM that I attended earlier this year, one retail investor related to the audience that he has invested a million Singapore dollars into the trust. I felt for this retail investor and he was frank enough to share his story.
And let us not forget Emperador, a leading high-growth international spirits company, primary-listed on the Philippines stock exchange and secondary-listed on SGX in 2022. The company joined the STI list in Sep 2022 and was removed from the list in Mar 2024. Since the debut on SGX, Emperador stock remained flat.
The above two episodes highlighted how two well-recognized stock and Trust have not performed well before despite their listing on SGX. Many have high anticipation of the ongoing review on the Singapore stock markets by a high-level panel. And we are starting to hear one by one, initiatives that are announced to boost the Singapore stocks markets. Initiatives like upskilling our remisiers and now attracting overseas brand names to IPO on SGX.
But for the measures aimed at boosting the Singapore stocks markets, I find that they are mainly the conventional measures. I look forward to more innovative ways to further boost the Singapore stocks markets.
At the end of the day, among all the stakeholders, I believe the stakeholder that the Singapore stocks markets should benefit the most is our average retail investors, simply because there is no other reason for them having to invest their hard-earned monies other than seeking an opportunity to grow their monies for a better living for themselves and their families. But again and again, with so many sagas that plagued the Singapore stock markets before like S-chip saga, the 2013 penny stock sagas, former STI constituent stocks not doing well and eventually delisted, just to name a few, retail investors already have their fair share of their disappointment. Enough is already enough.
I can also say this it is bad enough to lose one’s monies but if because of the losses that our retail investors experienced on our dear Singapore stock markets, they are no longer confident to invest their dollars anywhere be it overseas or local for the rest of their lives. This is the greater fear I have. And can you imagine the retail investors who experience such a ride telling their children that investing is indeed dangerous? That will take away a potential wealth generation mechansim for the investors for the current and future generations.
I look forward to seeing the recommendations of the panel tasked with boosting the Singapore stocks markets.