Dear readers, I shared in a recent post on how Singapore stocks markets seem to be getting more and more unattractive.
In the post, I shared firstly the general sentiments among local investors here that Singapore stocks markets are not as dynamic or vibrant as other stock markets. Secondly, I recapped the less-than-stellar performance of the Straits Times Index (STI) over the past few years, as compared to stocks listed elsewhere. And last but not least, I pointed to the very lacklustre statistics, showing that Singapore is the region’s worst performer when it comes to IPO in 1st half of 2024: there was only 1 IPO.
If the Singapore stocks markets are not interesting or attractive, and Singapore-based companies are to list overseas instead, will you be more supportive towards investing in these companies?
Today’s The Business Times carried an article on the performance of 5 Singapore-based companies that had their IPOs in the US in 1st half of the year. Among them, 3 of these stocks were in the red, as follows:
YY Group: US$0.80 (as of 5 Jul 24), down 80% from IPO price of US$4
Mobile-health Network Solutions: US$1.52 (as of 5 Jul 24), down 62% from IPO price of US$4
Super Hi:US$18 (as of 5 Jul 24), down 8% from IPO price of US$19.56
Super Hi is the operator of well-known Haidilao hotpot chain, which dual-listed in NASDAQ, 1.5 years after being listed on the Hong Kong Stock Exchange.
Tungray Technologies, the fourth Singapore-based debutants closed unchanged at US$4 on 5 Jul 24, same as its IPO price.
Only Ryde Group (the hail riding group) turned a profit since its IPO in the US. The stock closed 105% higher at US$8.20 (on 5 Jul 24), as compared to its IPO price of US$4.
I also noted in the article that Singapore-based property technology Ohmyhome, which had its IPO in Mar 2023, was also not doing well. Ohmyhome’s IPO price was US$4 and its stock price yesterday was USD $0.56. As the stock had not met the minimum bid price of US$1 per share for 30 consecutive days, it was reported that the company recently received a deficiency letter from NASDAQ to the effect that it needed to achieve a closing bid price of at least US$1 by 28 Oct 24, failing which it may be eligible for additional time to regain compliance or face delisting.
In view of the aforementioned, it is not a given that Singapore-based companies which made their IPO on the more attractive US stocks markets will always do well. When it comes to investing in a stock or IPO, I would consider the business model and fundamentals of the company, more than anything else.