Singapore’s stock market has seen an average of two companies a month looking to delist this year.
Sunday 28, July 2019
The Singapore Exchange (SGX) changed the voluntary delisting rules earlier this month, shifting the power to minority shareholders, rules which will make bidders pay higher premiums to get deals done, reported Bloomberg.
Delistings are expected to continue in H2 2019 even at higher prices because the rule change does not affect the persistently low valuations which continue to plague the Singapore market.
Taking listed firms private has been a key theme in Singapore’s equity market over the past few years as major shareholders, institutional investors and industry peers buy up companies due to low multiples.
According to a report from DBS Group Holdings, fourteen companies are undergoing privatisation or in the process of being bought out this year, the highest number since 2016.
Five companies that analysts say are ripe for potential delistings are SIA Engineering, Unusual as well as Fu Yu Corporation, Frencken Group and The Hour Glass.