deloitte us - southeast asia key highlights: count and funds … · 2020-03-18 · singapore’s...

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/sg/about to learn more about our global network of member firms.

© 2016 Deloitte & Touche LLP

87

6771

3354

20

4329

3,993

1,526

5,759

719

8,073

799 454 527 0

1,000 2,000 3,000 4,000 5,000 6,000 7,0008,000

ConsumerBusiness

IndustrialProducts

Energy andResources

FinancialServices

Real Estate Life Sciencesand Health Care

Public Sector Technology, Mediaand Telecommunications

0102030405060708090

Amou

nt ra

ised

($S’

m)

No.

of I

POs

Southeast Asia IPO Highlights2014-2016*

IPO listings in Southeast Asia outperformed Hong Kong and Australia by IPO count for three consecutive years

Market trendsFive of the ten member countries of the Association of Southeast Asian Nations (ASEAN) are among the top 25 countries globally in terms of GDP growth . The ASEAN Economic Community (AEC) had a nominal GDP of $2.4 trillion in 2013, placing it seventh overall in the world. Given current growth patterns, the AEC is predicted to rise to the fourth spot by 2030.

Compounded by the fact that China’s economic growth has been slowing over the years, leading foreign companies and investors to look towards SEA as a region of economic interest.

• This is in line with Annual Real GDP Growth which shows that ASEAN-5 has higher growth rate at 4.8% than Hong Kong (2016: 1.4%) and Australia (2016: 2.9%) throughout the period.

• The high number of IPOs indicate that Southeast Asia stock markets are active and liquid.

Source: IMF

• Abolishment of the cap on foreign ownership of 49% in listed companies in September 2015, along with major privatisation of Vietnam’s Consumer Business, Industrial Products, Energy and Resources, and Public Sector industries state-owned enterprises (SOE) allowed it to contribute highest amount to total IPO count of 145 out of 404 IPOs in Southeast Asia over the past three years.

• In Southeast Asia emerging markets, Consumer Business, Industrial Products as well as Energy & Resources sectors represent 50-60% of total GDP. With cheap labour market, improved infrastructure and technology utilisation, as well as recent formation of ASEAN Economic Community (AEC) which further eases exploitation of economies of scale, Southeast Asia is seen as growing production base for these sectors.

• Singapore’s, Thailand’s and Malaysia’s Real Estate Investment Trust listings over the period raised total of S$5.8 billion (S$3.8 billion, S$2.0 billion and S$80.9 million respectively), which made up 72% of funds raised in Real Estate sector.

*as at November 15, 2016

Key highlights: count and funds raised

Comparison with Global Exchanges

Top industries of ASEAN stock exchanges in 2014 - 2016

Source: Bloomberg

2014 2015 2016

149 dealsS$9.8 billion


(40% )


(5% )

149404

314

505

248106

125

76

154116

219

99101 92

161

73

0

50

100

150

200

250

Southeast Asia(S$ 21.9 billion)

Hong Kong(S$ 89.5 billion)

China(S$ 70.8 billion)

Australia(S$ 35.4 billion)

No

of IP

Os

in 2

014-

2016

2014

2015

2016



EUROPE(S$369.0 m)

1

CHINA(S$643.7 m)

2

AUSTRALIA(S$903.0 m)

1SINGAPORE(S$1.2 b)

3

USA(S$650.0 m)

1

Singapore IPO Highlights

Singapore’s 2016 IPO proceeds biggest among Southeast Asia exchanges

Market trendsSingapore IPO performance improved in 2016. This is in spite of global issues such as Brexit, 2016 US presidential election, uncertainty surrounding a Federal interest rate hike, and a decrease in domestic GDP y-o-y growth rate in Q3 2015 of 0.6%.

Persistent low interest rates around the world have driven demand for real-estate investment trusts, which pay out a large portion of their earnings as dividends.

In 2016, Real Estate Investment Trusts (“REITs”) continue to be the main contributor to total amount raised during the year at S$1.9 billion and IPO market capitalisation of S$2.6 billion. (2015: total amount raised of S$275.5 million and IPO market capitalisation of S$394.2 million).


Top industries Singapore Stock Market

* REITs forms 61% of total amount raised from all IPOs in the last 3 years

Geographical assets for REITs

Top 3 REITs

2015 2016

13 dealsS$512.4 million


(342% )

Consumer Business13 deals(S$1.2 billion)

Real Estate10 deals(S$3.9 billion)

Energy and Resources9 deals

(S$754.5 million)

SGX MainboardS$ 1.8 billion

Funds Raised

S$ 12.1 billionIPO Market Cap

P/E Ratio 10

SGX CatalistS$ 648.8 million

Funds Raised


P/E Ratio 8

REITs

S$ 3.8 billionFunds Raised


903

650

368

1,268

720 627

Frasers Logistics andIndustrial Trust (20 June 16)

Manulife US REIT(20 May 16)

EC World REIT(28 July 16)

Amount Raised(S$'m)

IPO Market Cap(S$'m)

Industry Trends 2014 – 2016



SGD13.7bn

SGD24.8bn

SGD39.2bn

SGD79.9bn

SGD47.1bn

SGD151.2

bn SGD140.9

bn

SGD63.4bn

Agriculture

Mining

Basic Industry

Misc. Industry

Consumer

Property

Infrastructure

Finance

Trade

SGD0.3bn

SGD0.6bn

SGD0.9bn

SGD1.2bn

SGD0.7bn

SGD40.7bn

SGD2.3bn

SGD1.5bn

SGD2.6bn

SGD0.9bn

TradingValue

MarketCap.

Indonesia IPO Highlights

“Despite the slowdown in 2016, the 2017 Indonesia IPO market is expected to recover through several IDX initiatives and policy reforms such as raising capital market awareness via investment galleries, seminars & workshops, reducing the process time to become listed and REITs tax reduction”.

Market trendsA combination of sluggish economic recovery as well as domestic and global market uncertainties resulted in companies adopting the wait-and-see approach in terms of going public. However, the Jakarta Composite Index ( JCI) benchmark has gained approx. 17% so far this year, among the highest growth enjoyed by major markets globally, as foreign investors poured in a net S$ 3.99 billion.

The recent Tax Amnesty policy has encourage several businesspeople who keeps their assets offshore to repatriate their assets by investing in stocks, government/corporate bonds and securities.

IDX will organize a business incubator program to help the country’s start-ups to develop their businesses so that they are eligible to float their shares on the stock market. At least 30 start-ups are expected to participate in the program.

Industry Trends 2014 – 2016


Top industries

Indonesia Stock Market Trading Value & Market Cap. as of September 30, 2016 (in S$ billion)

Jakarta Composite Index as of January 2014 – September 30, 2016

2015 2016



(5% )

Financial Services15 deals

(S$310.4 million)

Energy and Resources8 deals

(S$494.0 million)

Real Estate8 deals

(S$438.9 million)

Technology, Media and Telecommunications

8 deals(S$227.9 million)

MainboardS$1.2 billion

Funds Raised

S$8.4 billionIPO Market Cap

P/E Ratio 29

Development BoardS$ 2.0 billion

Funds Raised

S$8.2 billionIPO Market Cap

P/E Ratio 30Jan 2, 20144,327

Jan 2, 20155,243

3 ,500

4,000

4,500

5,000

5,500

6,000

1/2/2014 1/2/2015 1/2/2016

CAGR: 2.2%

Jan 5, 20164,558

Sep 30, 20165,365

deloitte us - southeast asia key highlights: count and funds … · 2020-03-18 · singapore’s...

Documents