Initial Public Offerings Of 2015: Have They Done Well?

Credit: Simon Cunningham

It has been a tough time for Singapore’s stock market over the past year with the Straits Times Index  (SGX: ^STI) losing 17.5% in price from 9 January 2015 to 8 January 2016.

Meanwhile, the local IPO (initial public offering) scene has been lacklustre as well, as there were only 13 listings in total in 2015, a significant decline from the number of listings seen in 2014.

The table below ranks all the 2015-IPOs based on their listing date. Let’s check out how they’ve fared:

IPO Table in 2015
Source: Shareinvestor

I have two main observations from the results seen in the table above.

First, there is a huge variance in stock market performance of the new IPOs in 2015, from a 72% loss to a 196% gain; the biggest loser is regional communications services provider CMC Infocomm Ltd  (SGX: 42F) while women’s healthcare provider Singapore O&G Ltd (SGX: 41X) had emerged as the top winner.

Second, while Singapore’s stock market is a popular place for real estate investment trusts (REITs) and business trusts, BHG Retail Reit (SGX: BMGU) was the only trust to be listed in 2015. Most of the IPOs shown in the table above were for the smaller Catalist board.

This may be a sign that bourse operator Singapore Exchange Limited (SGX: S68) has lost some of its competitive positioning as it had only been able to attract smaller companies to list. Investors may want to keep an eye on the state of Singapore’s IPO market to see if it can improve going forward.

Foolish summary

The exercise above is to just have a quick look at the shares in Singapore which got listed in 2015. In summary, the new stocks haven’t done well with many of them losing close over one-third of their market capitalization in a short period of time. Of course, the overall slump in Singapore’s stock market had likely played a large role in those losses too.

In a future post, I’d be taking a closer look at the best and worst IPO stocks in 2015 and the lessons we can draw from their experience.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor James Yeo doesn’t own shares in any companies mentioned.