Despite all the work and innovation, SGX has yet to secure a dual listing with Nasdaq or TASE, although industry sources indicate that there are potential issuers moving through the pipeline.The fact is that dual listings have always been a bit of a mixed bag for SGX. It might be tempting to look at the 30 secondary listings currently on SGX and conclude that the secondary listings have brought mostly winners to the market.
Indeed, a number of companies in recent years have also pulled the plug on their secondary listings on SGX. The most recent is Alibaba Pictures Group, which has taken steps to delist its shares from SGX by December this year to retain only its primary Hong Kong listing. But wariness has returned about moving capital across borders. In politics, that friction comes from anti-capitalist sentiment and a broad trend toward tightened borders.
On Jul 16, when Bursa Malaysia experienced technical issues that shut down trading, investors in Singapore were able to continue trading shares of Malaysian rubber glove manufacturer Top Glove.Another development helping SGX is the cyclical development of the region’s start-up sector. That no doubt contributed to home-grown tech businesses like Sea, Razer and PropertyGuru not taking the option to have SGX as their secondary listing destinations, even if PropertyGuru eventually scrapped its plan to IPO in Australia.It will take substantial effort to overcome those hurdles. SGX, underwriters and stockbrokers may need to invest extra resources to educate and interest investors in Singapore about foreign companies where brand name recognition is not as strong.
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Source: ChannelNewsAsia - 🏆 6. / 66 Read more »