Dear readers, much has been discussed about the state of the Singapore stock market (SGX), so I will not go into further detail.
There are high expectations for the working group charged with rejuvenating the Singapore stock markets.
Their responsibilities include attracting more companies to list in Singapore and reversing the trend of companies delisting from SGX. In gist, to improve the state of the Singapore stock market.
Regarding new listings, SGX is currently the region’s poorest performer. This year, there has been only one IPO listing on SGX, which was for Singapore Institute of Advanced Medicine Holdings (SGX:9G2).
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The initial offering price for Singapore Institute of Advanced Medicine Holdings was S$0.23 per share. At the time of writing, the share price has fallen to $0.084, indicating a decline of approximately 63.5% from the IPO price.
Such performance from Singapore Institute of Advanced Medicine Holdings could discourage potential listings on SGX. Moreover, investors who purchased shares at the IPO are now facing significant unrealized or realized losses.
From personal experience, I have learned lessons from investing in several IPOs. For instance, I purchased shares of Hutchinson Port Holdings Trust (HPH) at its IPO in 2011 for USD $1.01, and I still hold them, now valued at USD $0.126. During the most recent HPH AGM, an investor mentioned investing about S$1 million in the HPH trust at the IPO.
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The Singapore stock market should serve the interests of the numerous retail investors who invest their hard-earned money in SGX-listed companies. Investors seek straightforward capital growth over time, and it is crucial for the authorities to ensure that only reputable companies are listed on SGX.