Singapore IPO players on the fence as they await resolution of Middle East war

The Republic’s initial public offering (IPO) market had a vibrant six months up to Mar 31, with 10 primary and secondary listings on the Singapore Exchange (SGX), more than double the four listings during the same period a year earlier.

Several listings saw outsized demand from investors, including of Soon Hock Enterprise, an industrial property developer, and The Assembly Place, a co-living disruptor. Their IPOs were oversubscribed 17 and 35 times, respectively, indicating strong retail and institutional appetite for their offerings.

Mixed performance in 2026

Yet their performance post-IPO “has been mixed”, said Carmen Lee, head of equity research at OCBC Group Research.

Among the listings, the best performers were Soon Hock Enterprise and The Assembly Place, which were trading above their IPO price at 5.2 and 4.4 per cent, respectively.

On the other hand, integrated renewable energy service provider Concord New Energy Group, and Coliwoo – a co-living and serviced apartment player, saw their performance down 30 and 18.3 per cent, respectively, since their IPO.

Glenn Thum, research manager at Phillip Securities Research, said: “While outperformers like Soon Hock and The Assembly Place have been rewarded for exceptional earnings execution and asset-light, tightly priced offerings, the market has heavily penalised underperformers like Concord New Energy and Coliwoo Holdings.”

He added: “Despite operating in high-demand structural growth sectors like renewables and co-living, these names faced steep sell-offs due to their severe margin compressions, high debt burdens and capital-intensive structures, proving that pristine balance sheets currently outweigh sector hype in a highly selective market.”

Healthy pipeline momentum

Industry observers expect this momentum to continue despite the outbreak of war in the Middle East, which sent oil prices soaring.

“The pipeline appears more constructive than in recent years, with a growing number of companies preparing to list,” said Jimmy Seet, capital markets partner at PwC Singapore.

Tan Mui Hui, deputy head of capital markets, and mergers and acquisitions partner at Rajah & Tann Singapore, identifies two primary engines for the current deal flow: the digital economy and the energy transition.

On the tech front, she sees rising demand for artificial intelligence-powered, cloud-based software-as-a-service (SaaS) and biotech. SaaS is a software distribution model where applications are hosted by a provider and accessed by users over the Internet via a subscription.

Simultaneously, the push for sustainability has “spurred deal interest in renewable energy, particularly within the solar power space”.

Tay Hwee Ling, capital markets services leader at Deloitte Southeast Asia, noted that while real estate investment trusts (Reits) and large-cap firms still dominate, mid-sized companies are increasingly gaining the confidence to list.

Steven Lo, Drew & Napier’s co-head of capital markets, said: “For instance, UI Boustead Reit raised about S$973.6 million in March 2026, while the listing of the Centurion Accommodation Reit raised around US$771.1 million and the NTT DC Reit raised around US$773 million.”

Tatagraha Goeyardi, co-head of investment banking and advisory at Maybank Securities Singapore, said that geographically, both Singapore-based and regional issuers are evaluating the city-state as a strategic capital-raising platform.

This broadening interest across sectors and geography is supported by the suite of strategic initiatives by the Monetary Authority of Singapore (MAS) and SGX, which includes the Equity Market Development Programme, Global Listing Bridge and schemes such as the Grant for Equity Market Singapore for IPO grant support and Value Unlock initiatives for post-listing.

As at late March 2026, MAS has already deployed nearly S$4 billion across nine selected asset managers, and signalled that a third batch of fund managers will be appointed in mid-2026.

PwC’s Seet said: “Together, these measures enhance price discovery, improve trading liquidity, and help companies better reflect their intrinsic value, making the public market a more compelling platform for both existing and prospective issuers.”

Gulf conflict could weigh on sentiments

Whether the pipeline can sustain its momentum depends in large part on how the geopolitical situation evolves. The escalating Gulf conflict since March could significantly delay listings planned for the first half of 2026, with analysts warning that potential issuers may defer their plans.

The “wait-and-see” approach is already defining the immediate market. Drew & Napier’s Lo said: “Looking into the first half of 2026, we expect investor sentiment to remain cautious amid ongoing global geopolitical tensions.”

OCBC’s Lee echoed this, observing that “some impending IPOs adopt a wait-and-see approach for better market pricing and demand”. Thus, some IPOs could be “back-loaded to the second half of 2026”.

Rajah & Tann’s Tan, however, maintains that IPO targets have generally not postponed their timelines yet.

“While the Middle East conflict has increased volatility in the region, causing a more cautious environment, Singapore’s ‘safe haven’ status has allowed it to maintain its relatively robust market.”

Source: The Business Times © SPH Media Limited. Permission required for reproduction.

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