IPO Report Card: How SGX IPOs In 2019 Have Fared
In 2019, there were 11 Initial Public Offerings (IPOs) listed on the Singapore Exchange (SGX). This is seven fewer than the 18 IPOs that listed in 2018, less than half the 24 IPOs in 2017.
Based on the two IPOs that have listed in the first two months of 2020, it looks like the SGX is on course to see a similar number of IPOs as 2019 – around 12?
At the same time, there have also been a string of delistings as well. They include well-known names like Global Logistics Property (GLP), Keppel T&T, M1, and many more in recent years.
While this doesn’t necessarily bode well for the diversity of companies that we can invest in on SGX, this is a problem that even the established markets such as the US and UK face. On the other hand, SGX can take heart that the total amount raised in 2019 was approximately $3.8 billion, 5 times the $730 million raised in 2018.
With that said, we take a look at the newest names on SGX in 2019 and look at how they have performed.
Figures from SGX, accurate as at 12 Feb 2020
IPOs in 2019
#1 Grand Venture Technology (SGX: JLB)
According to its website, GVT is a manufacturing solutions and service provider for the semiconductor, analytical life sciences, electronics and other industries, and has operations in Singapore, Malaysia and China.
GVT was the first IPO on SGX in 2019. Listed on SGX’s Catalist list, a second board (in addition to the Mainboard) which is typically home to younger companies and is less stringently regulated.
In its most recent half-year results on 14 August 2019, it announced a 17% decrease in revenue to $18.1 million and a corresponding 56% decline in net profit to $1.4 million.
Today, it is also trading slightly under its IPO offer price, at $0.270, compared to $0.275.
#2 Sim Leisure Group (SG: URR)
Sim Leisure Group, or SLG, is a leading theme park operator in Penang, Malaysia with 30 years of experience under its belt. It operates the ESCAPE Adventureplay and ESCAPE Waterplay in Penang. Currently in the planning stage is a third theme park in Penang – ESCAPE Gravityplay – as well as expansion of its theme park presence in China.
Also listed on the Catalist list, it recorded revenue growth of 1% to RM8.5 million in its half-year announcement on 14 August 2019. Mainly due to growth in expenses, it made a net loss of RM2.8 million during the reporting period.
Today, its share price is trading at $0.215, slightly below its IPO offer price of $0.22.
#3 Reclaims Global (SGX: NEX)
Reclaims Global has three main businesses – recycling construction waste material, excavation services, and logistics and leasing of its fleet of tipper trucks, excavators, dump trucks, mobile jaw crushers and mobile screeners.
Similarly listed on SGX’s Catalist list, Reclaims Global reported a 15.6% increase in revenue to 15.2 million in its half-year 2019 results on 12 September 2019. This lifted its net profit levels from a loss of $92,000 in its first half 2019 results to a profit of $450,000 in the first half of 2020.
When it was listed on 11 March 2019 at an IPO offer price of $0.230, it experienced a plunge in its first-day price to $0.148. Today, its share price has climbed to above its IPO offer price to $0.330 or 43.5% higher.
#4 Fortress Minerals (SGX: OAJ)
Fortress Minerals is a leading iron ore concentrate producer in Malaysia, in the business of exploration, mining, production and sale of iron ore concentrate. Its customers are mainly steel mills in Malaysia and China.
Also listed on the SGX Catalist list, its share price has risen 12.5% to $0.225 today, from its IPO offer price of $0.200.
It also provided a dividend. During its first-quarter results announcement on 9 July 2019, it announced a dividend of $0.0016 per ordinary share, and during its third-quarter results announcement on 8 January 2020, it announced a dividend of $0.002 per ordinary share. Combined, it has delivered a dividend yield of 1.8% based on its IPO offer price.
#5 ARA US Hospitality Trust (SGX: XZL)
ARA US Hospitality Trust was the first REIT to be listed on SGX in 2019 and was also the first SGX Mainboard listing in 2019.
The first US pure-play hospitality REIT to be listed in Singapore and Asia, ARA US Hospitality Trust has a portfolio of 41 hotels, with 5,340 guest rooms, across 22 states in the US.
It has not provided a distribution to-date and states that its first distribution will be for the period from its listing to 31 December, and will be paid on or before 31 March 2020.
#6 Eagle Hospitality Trust (SGX: LIW)
Listed in the same month as ARA US Hospitality Trust, on 24 May 2019, Eagle Hospitality Trust became the second REIT to be listed on SGX in 2019, the second Mainboard listing, and the second US pure-play hospitality REIT listed in Singapore and Asia.
Eagle Hospitality Trust has 18 properties across the US. 17 of these properties are freehold, while one is a ship – The Queen Mary. Since its listing, Eagle Hospitality Trust has had negative publicity over its Queen Mary asset.
Since then, its share price has plunged 32.1%, to US$0.53 today, from its IPO offer price US$0.78.
Similar to ARA US Hospitality Trust, it has also not provided a distribution to-date and states that its first distribution will be for the period from its listing to 31 December, and will be paid on or before 30 March 2020.
#7 Alliance Healthcare Group (SGX: MIJ)
Listed on 31 May 2019, Alliance Healthcare Group is an integrated healthcare solutions group primarily operating in Singapore.
In its latest full-year results, it recorded an 8.0% increase in revenue to $36.5 million. However, due to a decrease in profitability in its businesses and IPO listing fees, it reported a 77.7% drop in net profit to $774,000.
Correspondingly, its share price currently trades at $0.150, a 25% decrease from its IPO offer price of $0.200.
#8 Tricklestar (SGX: CYW)
Tricklestar designs and supplies energy-saving products to help consumers reduce energy consumption and wastage in their homes and workplaces, and sells to electric utilities, energy efficiency programmes, implementation contractors and energy auditors in the US. Its products include advanced power strips, load controllers, energy monitors, energy meters and surge protectors.
In its latest half-year results, it reported a 12.3% increase in revenue to US$6.6 million. Despite this improved performance, it incurred a net loss of US$299,000, mainly due to IPO listing expenses.
Despite this, its share price has risen 67.3% to $0.435 today, from its IPO offer price of $0.260. In fact, its share price rose 30.8% to $0.340 on the first day of trading itself.
#9 ST Group Food Industries Holdings (SGX: DRX)
Operating mainly in Australia, New Zealand, Malaysia and the United Kingdom, ST Group Food Industries holds the exclusive franchise and licence rights to popular F&B brands such as “PappaRich”, “NeNe Chicken”, “Gong Cha”, “Hokkaido Baked Cheese Tart”, “Ippudo” and “iDarts” in various territories. It has also developed its own brand concepts “PAFU” and “KURIMU”. It has a network of 113 outlets.
In its latest set of full-year results on 27 August 2019, it reported a 42.9% growth in revenue to A$52.1 million. Its net profit came in A$3.0 million.
Its current share price is trading at $0.215, a 17.3% decrease from its IPO offer price of $0.260.
#10 Prime US REIT (SGX: OXMU)
Prime US REIT was the first SGX listing over the billion-dollar mark in 2019. With a market capitalisation of US$1.3 billion, Prime US REIT owns a portfolio of 11 freehold office properties across nine key US office markets.
Since its listing, Prime US REIT’s unit price has risen 15.9% to US$1.02.
Similar to the two other REITs, which also were exposed to a US pure-play property portfolio, Prime US REIT will be paying its maiden distribution on or before 30 March 2020, for the period from its listing to 31 December 2019.
#11 Lendlease Global Commercial REIT (SGX: JYEU)
The final IPO in 2019 was Lendlease Global Commercial REIT, which owns two properties – 313@Somerset in Singapore and Sky Complex in Milan, Italy. It has a market capitalisation of $1.1 billion.
Since its listing, its unit price has increased by 3.9% to $0.914.
Out of the newly listed REITs, it is the first to announce a distribution, for the period from 2 October 2019 (its listing date) to 31 December 2019. It will be a distribution of $0.0129 per unit, which translates to a dividend yield of 5.7%.