Singapore and Malaysia revitalise Southeast Asia s IPO market in 2017 with blockbuster listings

Transcription

1 Singapore and Malaysia revitalise Southeast Asia s IPO market in 2017 with blockbuster listings A review of the Southeast Asia IPO market from 2014 to 2017 By Dr. Ernest Kan, Deputy Managing Partner (Markets), Deloitte Southeast Asia Ms Tay Hwee Ling, Global IFRS & Offerings Services Leader, Deloitte Singapore and Mr Gary Huang, Global IFRS & Offerings Services Leader, Deloitte Malaysia 23 November 2017

2 Contents Presenters Southeast Asia IPO Review Ernest Kan Deputy Managing Partner (Markets) GIOS Southeast Asia Leader (+65) Malaysia IPO Review Gary Huang GIOS Malaysia Leader (+60) Gary huang@deloitte.com Singapore IPO Review Tay Hwee Ling GIOS Singapore Leader (+65) hwtay@deloitte.com 2017 Global IFRS and Offerings Services. All rights reserved. 2

3 Southeast Asia IPO Review

4 SEA IPO Market Review Key highlights (2017 vs 2016) 144 IPOs in 2017 (10.5 months)*, with S$ 10.4 billion raised highest funds raised in four years The average funds raised and IPO market cap per IPO in 2017 far exceeded those in the past two years. and S$ 33.9 billion market capitalisation Y-o-Y increase of 38% in amount raised and 32% in market capitalisation Singapore and Malaysia lead the pack in IPO funds raised in blockbuster listings raised over S$5.1 billion (137 companies raised $5.3 billion) 113 IPOs in 2016 (12 months), with S$ 7.5 billion raised and S$ 25.7 billion market capitalisation *data is accurate as at November 15, 2017 and does not include the upcoming IPOs from 16 November 2017 to 31 December Global IFRS and Offerings Services. All rights reserved. 4

5 Number of IPOs IPO market cap/amount raised (S$ million) SEA IPO Market Review Key highlights ( ) , Total of 560 IPOs across Southeast Asia from 2014 to 2017, with S$33 billion raised, and S$137 billion market capitalisation Amount raised, IPO market cap and number of IPOs ,930 45,000 40,000 35,000 30, ,671 23,132 9,269 10,402 7,525 5, Number of IPOs Amount raised 9,269 5,312 7,525 10,402 IPO market cap 42,564 23,132 25,671 33,930 25,000 20,000 15,000 10,000 5,000 Average amount raised (S$ m) Average market capitalisation (S$ m) Number of IPOs Amount raised IPO market cap On average, each of the 144 IPOs in 2017 raised S$5.6 million more funds and were S$8.4 million larger in size 2017 Global IFRS and Offerings Services. All rights reserved. 5

6 Amount raised (S$ million) SEA IPO Market Review: by country Y-o-Y amount raised in ,000 3,500 3,000 5,637 9,887 9,017 2,500 2,000 4,432 2,488 1,500 1,000 1, Indonesia Malaysia Philippines Singapore Thailand Vietnam , ,451 2, ,166 1, , , ,277 2,263 2, ,037 2, ,662 2, Malaysia raised 6x more funds in 2017 Indonesia and Thailand have consistently raised S$1 billion and S$2 billion respectively for the past four years. Singapore maintains the top spot on Southeast Asia leaderboard with largest funds raised 2017 Global IFRS and Offerings Services. All rights reserved. 6

7 IPO market capitalisation (S$ million) SEA IPO Market Review: by country Y-o-Y IPO market capitalisation in ,000 18,000 16,000 14,000 28,142 38,239 12,000 10,000 8,000 20,405 18,388 11,621 6,000 4,000 8,503 2,000 0 Indonesia Malaysia Philippines Singapore Thailand Vietnam ,153 6,736 2,168 15,303 11,998 1, ,357 4, ,888 8,470 1, ,950 1,285 5,480 4,396 6,237 2, ,946 5,807 3,414 6,555 11,534 3,674 Two blockbuster listings Malaysia Lotte Chemical Titan Holdings Berhad (S$3.9b) Singapore Netlink NBN Trust (S$3.1b) Thailand is the clear market leader with regards to size of companies that sought listings from 2014 to Global IFRS and Offerings Services. All rights reserved. 7

8 SEA IPO Market Review: 7 blockbuster listings A further look into Thailand, Malaysia and Singapore s IPO markets in 2017 Singapore Industry Listing type Funds raised (S$ mil) Market cap (S$ mil) % NetLink NBN Trust TMT Mainboard - Trusts 2,447 3,130 78% Keppel-KBS US Reit Real estate Mainboard - Trusts % Rest of IPOs Various 604 2,672 23% Total 3,662 6,555 56% Malaysia Industry Listing type Lotte Chemical Titan Holding Energy and Berhad Resources Thailand Industry Listing type Tpi Polene Power Public Company Limited B.Grimm Power Public Company Limited Toa Paint (Thailand) Public Company Limited Funds raised (S$ mil) Funds raised (S$ mil) Market cap (S$ mil) % Main board non-trust 1,196 3,910 31% Eco World International Berhad Real estate Main board non-trust % Rest of IPOs Various % Total 2,353 5,807 41% Market cap (S$ mil) % Energy and Resources SET 705 2,370 30% Energy and Resources mai 212 2,683 8% Industrial Products mai 250 1,997 13% Rest of IPOs Various 1,171 4,484 26% Total 2,339 11,534 20% The two largest IPOs in Singapore are from TMT and real estate sectors and they floated 78% and 81% of the outstanding shares/units respectively The second largest IPO in Malaysia is from the real estate sector; it floated 90% of its outstanding shares. The three largest IPOs in Thailand are from ER and Industrial products sectors; and they respectively only float 8% - 30% of the outstanding shares in the IPO Global IFRS and Offerings Services. All rights reserved. 8

9 Number of IPOs Amount raised (S$ million) SEA IPO Market Overview: industry analysis Total number of IPOs and amount raised in Top 3 industries based on 145 IPO count 11,064 Real Estate raised the most funds at S$11.1 billion over the past four years. 12,000 10, , , Out of which S$7.1 billion came from REITs in Singapore (S$4.4 billion), Thailand (S$2.5 billion) and Malaysia (S$154.9 million) 8,000 6, , Consumer Business Industrial Products Energy and Resources Financial Services Real Estate Life Sciences and Health Care , Public Sector 33 2,984 Technology, Media and Telecommunications 4,000 2,000 0 No. of IPOs Amount raised 2017 Global IFRS and Offerings Services. All rights reserved. 9

10 Number of IPOs Amount raised (S$ million) Number of IPOs Amount raised (S$ million) SEA IPO Market Overview: industry analysis Consumer business and industrial products by country Consumer business (CB) , , ,600 1,400 1,200 1, Vietnam contributed significantly to the high IPO count in the consumer business and industrial products segments, but also had a disproportionately low contribution to the amount raised by the two segments. - Indonesia Malaysia Philippines Singapore Thailand Vietnam Industrial products (IP) Indonesia Malaysia Philippines Singapore Thailand Vietnam 328 1, Thailand had the second highest amount raised in both CB and IP industries. No. of IPOs Amount Raised (S$ millions) 2017 Global IFRS and Offerings Services. All rights reserved. 10

11 Amount raised (S$ million) Number of IPOs Amount raised (S$ million) SEA IPO Market Overview: industry analysis Energy and resources by country Thailand contributed to 41% of the total amount raised by the Energy and Resources (ER) segment from 2014 to 2017, which is in line with Thailand being a country rich in natural resources such as coal. In addition, the Thai government has been focused on developing renewable clean energy resources in the recent years, and has plans to build more coal-fired power plants, such that renewable energy will slowly but surely grow to be the country s main source of power in the future. According to Thailand s recent revision to its Alternative Energy Development Plan, Thailand has pledged to increase the portion of renewable energy to 40% in 2036 from the current 8%. An uptrend in amount raised by Thailand s ER segment is also seen in the second graph on the right, emphasising the Thai market s confidence in the government s plans and the industry ,600 1,400 1,200 1, Energy and resources (ER) Y-o-Y amount raised by Thailand s ER segment , , Indonesia Malaysia Philippines Singapore Thailand Vietnam No. of IPOs Amount Raised (S$ millions) 80-1, ,000 3,500 3,000 2,500 2,000 1,500 1, Global IFRS and Offerings Services. All rights reserved. 11

12 Number of IPOs Amount raised (S$ million) Number of IPOs Amount raised (S$ million) Number of IPOs Amount raised (S$ million) SEA IPO Market Overview: industry analysis Energy and resources, TMT and real estate Y-o-Y Energy and resources (ER) ,822 2, , ,435 3,656 Real estate 3, , ,400 3,500 2, , ,000 2, ,000 1,500 2,337 1, ,671 1,000 1, No. of IPOs Amount Raised (S$ millions) Technology, media and telecommunications (TMT) , No. of IPOs 4 Amount Raised (S$ millions) 3,000 2,500 2,000 1,500 1, saw a spike in amount raised by the ER and TMT segments due to blockbuster listings Malaysia s Lotte Chemical Titan Holding Berhad (ER; S$1.2 billion) and Singapore s Netlink NBN Trust (TMT; S$2.4 billion). The spike in 2016 was by the real estate segment Singapore s Frasers Logistics and Industrial Trust (S$903 million) and Manulife US REIT (S$650 million), and the Philippines Cemex Holdings Philippines, Inc. (S$626 million) Global IFRS and Offerings Services. All rights reserved. 12

13 SEA IPO Market Overview: post-ipo performance by country Change in share price from IPO Date to November 15, 2017 Indonesia * Philippines Malaysia Large caps in Indonesia, Philippines and Malaysia are performing below IPO share price Singapore Thailand All IPOs in Singapore, Thailand and Vietnam are performing well above IPO share price Vietnam -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% Large Medium Small Positive performance for IPOs from the past 2 years across Southeast Asia *Philippines data does not include DoubleDragon Properties Corporation that was listed in 2014 at IPO price of 2.00 pesos and is now pesos as of November 15, Global IFRS and Offerings Services. All rights reserved. 13

14 SEA IPO Market Overview: Market outlook SEA remains an economic powerhouse, with five countries' forecast GDP growth exceeding that of the 2017 World GDP at 2.7%*. MY: 4.8%* Malaysia s growth is fueled by private spending and exports. However, Malaysia continues to remain heavily reliant on oil exports and its trade with China. This is reflected in Malaysia s IPO market as well, in 2017 the majority of Malaysia s IPOs are energy and resource related. PH: 6.9%* Philippine's economic growth is mainly attributable to growth in exports. Also remittances rose 4.7% year over year, which is key driver of consumer spending growth. VN: 6.3%* Vietnam s growth is primarily seen in industry and service sectors. Being in a demographic sweet spot, having a robust domestic demand and enjoying an ever-increasing FDI are all reasons for Vietnam s rapid economic growth in the short term. SG: 2.5%* Not only did Singapore see strong growth in manufacturing, especially the electronics and precision engineering clusters, wholesale & retail trade, finance & insurance, as well as business services, all recorded accelerated year-on-year growth. TH: 3.2%* Thailand s economy is forecasted to grow the fastest in four years, fueled by surges in agriculture, tourism and exports; however, domestic demand continues to disappoint and political uncertainty still looms ID: 5.2%* Indonesia s credit rating has recently been raised from BBB- to BB+, officially making the economy investment grade. The upgrade is likely to mean more capital inflows and lower borrowing costs to the country. * Source: Global IFRS and Offerings Services. All rights reserved. 14

15 SEA IPO Market Overview: China s Impact Outbound activities During President Xi s speech during 19th CPC National Congress, he reaffirmed China s commitment to One Belt One Road Initiative; Booming IPO market (377 IPOs in Mainland and 121 IPOs in HK as of 31 October 2017) Inbound activities China reiterates commitment to opening capital markets to foreign investors; eases limits on foreign stakes in financial firms after Trump s visit Singapore has been strong supporter of China s financial institutions Temasek holds 10% of ICBC s H share and was a cornerstone investor in CITIC Securities HK-IPO. GIC holds 6.8% of China Pacific Insurance s H share Global IFRS and Offerings Services. All rights reserved. 15

16 Malaysia IPO Review

17 Malaysia IPO Market 2017 and Outlook for 2018 Mr Gary Huang, Global IFRS & Offerings Services Leader, Deloitte Malaysia 23 November 2017

18 Contents Malaysia IPO Market 2017 Malaysia IPO Market Outlook Deloitte Deloitte Malaysia IPO Market 2016 and Outlook for

19 Malaysia IPO Market Deloitte Malaysia Deloitte Malaysia IPO Market 2016 and Outlook for

20 Bursa Malaysia Performance 2015 November 2017 Indicator Nov 2017* Kuala Lumpur Composite Index 1, , Total Listed Companies** New Listed Companies Market Capitalisation (MYR billion) 1,695 1,649 1,819 * As of 15/11/2017 ** No. of New Listings (IPOs including LEAP Market Listing) 2016: 12, 2017: 13 (include 2 LEAP Market listing) No. of Delistings 2016: 11, 2017: Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

21 Market Capitalisation by Industry As of 31 October Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

22 Top 10 Companies by Market Capitalisation As of 15 November 2017 No Company Sector Market Cap (MYR Million) 1 Malayan Banking Berhad Banks 99,270 2 Tenaga Nasional Berhad Power 83,980 3 Public Bank Berhad Banks 79,270 4 Sime Darby Berhad Banks 61,210 5 PETRONAS Chemicals Group Bhd General Industrials 58,000 6 CIMB Group Berhad Banks 55,350 7 Axiata Group Berhad Malaysia Chemicals 48,130 8 Maxis Berhad Mobile Telecommunications 45,930 9 IHH Healthcare Berhad Healthcare 46, Digi.com Berhad Mobile Telecommunications 36,700 Market capitalisation of the 10 stocks 614, Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

23 Recent Malaysia Public Listed Companies January 17 November 2017 (Main & ACE Boards) No Name Listing Date Industry Amount Raised (million MYR) IPO Market Cap (million MYR) 1 KEJURUTERAAN ASASTERA BERHAD 17-Nov-17 Industrial Products LOTTE CHEMICAL TITAN HOLDING BERHAD 11-Jul-17 E&R 3,770 15,001 3 ADVANCECON HOLDINGS BERHAD 10-Jul-17 Real Estate INTA BINA GROUP BERHAD 25-May-17 Real Estate CABNET HOLDINGS BERHAD 22-May-17 Industrial Products EVERSAFE RUBBER BERHAD 21-Apr-17 Industrial Products ECO WORLD INTERNATIONAL BERHAD 03-Apr-17 Real Estate 2,584 2,880 8 SERBA DINAMIK HOLDINGS BERHAD 08-Feb-17 E&R 584 2,003 9 KIP REAL ESTATE INVESTMENT TRUST 06-Feb-17 Real Estate MATANG BERHAD 17-Jan-17 E&R HLT GLOBAL BERHAD 10-Jan-17 Industrial Products Source: Bloomberg & Bursa 2017 Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

24 Recent Malaysia Public Listed Companies January 17 November 2017 (LEAP Market) No Name Listing Date Industry Amount Raised (million MYR) IPO Market Cap (million MYR) 1 RED IDEAS HOLDINGS BERHAD 08-Nov-17 TMT CLOUDARON GROUP BERHAD 03-Oct-17 TMT Source: Bloomberg & Bursa 2017 Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

25 Malaysia IPO Market Outlook Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

26 Bursa Outlook for 2018 Bursa aim high to grow 2018 SME participation in IPO market Bursa to focus on SMEs LEAP is part of the SME Masterplan which aims to raise the share of gross domestic product contributed by SMEs. Malaysia is the first country in ASEAN to introduce such a market. 11 SMEs have engaged approved advisers to assist them with listing on the LEAP Market. Among these potential issuers are Cloudaron Pte Ltd, Agrofresh International Group Sdn Bhd, Red Ideas Holdings Sdn Bhd. To date, Cloudaron and Red Ideas have both successfully listed. SMEs at present make up 97% of businesses in Malaysia and will form the cornerstone of the future IPO Market. For the financial year ended March 31, 2017, Cloudaron registered a net profit of S$1.72mil (RM5.34mil), while Red Ideas Holdings has also performed well - based on the enlarged share capital of 100 million shares and the IPO price of 35 sen per share, the company s market capitalisation is RM35 million upon listing. Trading on the LEAP Market is limited to qualified investors, mainly those who fall within Part I of Schedule 6 or 7 of the Capital Markets and Services Act; the guiding principles are promoting a simple and easy listing regime and facilitating an efficient fundraising platform for initial listings and secondary fundraising with short time to market. Sources: Bursa website & Deloitte Deloitte Malaysia IPO Market 2017 and Outlook for

27 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 for a more detailed description of DTTL and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte s more than 225,000 professionals are committed to becoming the standard of excellence. About Deloitte Southeast Asia Deloitte Southeast Asia Ltd a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises. Comprising over 270 partners and 7,000 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities. About Deloitte in Malaysia In Malaysia, services are provided by Deloitte PLT (AF 0080), a partnership established under Malaysian law, and its affiliates Deloitte

28 Singapore IPO Review

29 Singapore IPO Market 2017 and Outlook for 2018 Ms Tay Hwee Ling, Global IFRS & Offerings Services Leader, Deloitte Singapore 23 November 2017

30 AMOUNT RAISED (S$ MILLION) IPO MARKET CAP (S$ MILLION) Singapore IPO Review Overall Singapore stock market in ,000 18,000 3,500 15,303 16,000 3,000 14,000 2,500 2,000 1,500 1, ,355 3,212 6,555 1,921 1, , (10.5 months) 12,000 10,000 8,000 6,000 4,000 2,000 - Amount Raised - Catalist Amount Raised - Mainboard - Trusts Amount Raised - Mainboard IPO Market Cap In only 10.5 months, 2017 s funds raised have already surpassed the last three years to be the highest in four years. More to come in the pipeline for the next 1.5 months Global IFRS and Offerings Services. All rights reserved. 30

31 NUMBER OF IPOS AMOUNT RAISED (S$ MILLION) Singapore IPO Review SEA and Singapore comparison in While Singapore contributed to only 13% of total IPOs, it contributed to a sizeable 30% of total amount raised in Southeast Asia from 2014 to ,941 12, , ,000 8, ,312 7,525 6, ,451 3,662 2, (10.5 months) 4,000 2,000 - Singapore no. of IPOs SEA no. of IPOs Singapore amount raised SEA amount raised 2017 Global IFRS and Offerings Services. All rights reserved. 31

32 Singapore IPO Review: industry analysis Number of IPOs There is a good industry mix seen in the yearly IPOs from 2014 to 2017, with only Public Sector and/or Financial Services unrepresented in the past three years Technology, Media and Telecommunications Public Sector Life Sciences and Health Care Real Estate Financial Services Energy and Resources Industrial Products Consumer Business Real Estate sees a steady increase in IPO count from 2015 to Singapore market sees the highest number of listings in Consumer Business annually, with the exception of the surge in Industrial Products in Global IFRS and Offerings Services. All rights reserved. 32

33 Singapore IPO Review: industry analysis Amount raised in Real Estate has dominated the amount raised in Singapore markets every year from 2014, except in 2017, where Technology, Media and Telecommunications took over the top spot. 4,000 3,500 Amount raised (S$ million) 3,000 2,500 2,000 1,500 1, Technology, Media and Telecommunications (TMT) , Technology, Media and ,447 Real Estate (RE) 1, , Telecommunications (TMT) Life Sciences and Health Care (LSHC) Real Estate (RE) 1, , Public Sector (PS) Energy and Resources (ER) Financial Services (FS) Consumer Industrial Business Products (CB) (IP) 1, Industrial Energy Products and Resources (IP) (ER) Life Sciences Consumer and Business Health Care (CB) (LSHC) 1, Financial Services (FS) Public Sector (PS) Global IFRS and Offerings Services. All rights reserved. 33

34 Number of IPOs Amount raised (S$ million) Singapore IPO Review: industry analysis Total number of IPOs and amount raised in ,782 5,000 4, ,000 3, ,506 3, , , , , Consumer Business Industrial Products Energy and Resources Financial Services Real Estate Life Sciences and Health Care Public Sector 16 Technology, Media and Telecommunications 1, No. of IPOs Amount raised Real Estate forms 48% while TMT forms 25% of total amount raised Global IFRS and Offerings Services. All rights reserved. 34

35 Singapore IPO Review Key highlights Singapore saw 15 listings in the first 10.5 months in There were 2 Company IPOs and 3 Trusts on SGX Mainboard, with S$248 million and S$3.2 billion funds raised respectively, and S$1.1 billion and S$4.3 billion market capitalisation at IPO. There were another 10 Catalist IPOs with S$202 million funds raised and S$1.1 billion market capitalisation at IPO. In addition to the listings mentioned above, there was 1 listing, 2 registrations and 1 lodged deal subsequent to 15 November : 2 Company Mainboard IPOs with S$235m funds raised and S$1.3bn market capitalisation 11 Catalist listings with S$106m funds raised and S$529m market capitalisation 3 Trusts listing with S$1.9bn funds raised and S$2.6bn market capitalisation 2017 Global IFRS and Offerings Services. All rights reserved. 35

36 IPO MARKET CAP / AMOUNT RAISED (S$ MILLION) NUMBER OF IPOS Singapore IPO Review Key highlights 7,000 6, ,000 5, ,000 3,000 4,396 3, ,000 2, , (10.5 months) No of deals Amount raised Market capitalisation 0 In 10.5 months, 2017 sees only 1 fewer deal as compared to the full year in 2016, while amount raised increased 61.8% and IPO market capitalisation saw an increase of 49.1% Global IFRS and Offerings Services. All rights reserved. 36

37 % IPOs with public subscription offers Median / average subscription (times) Singapore IPO Review Oversubscription of public offers 70% 60% 50% 40% 30% 20% 50% % Out of 15 IPOs in 2017, 10 offered subscriptions to the public (67%). ALL of these IPOs were oversubscribed at a median of 31.8 times and an average of times. 10% 0% % IPOs with public subscription offers Median subscription Average subscription : 8 out of 16 IPOs offered subscriptions to the public (50%). All were oversubscribed at a median of 7.00 times and an average of times Global IFRS and Offerings Services. All rights reserved. 37

38 Singapore IPO Review All listings in IPO with the largest % increase in share price at 420% # Company Mainboard/ Catalist Date of listing Amount Raised (S$ million) IPO Market Cap (S$ million) Offer Price (S$) Share Price as at 15-Nov-17 (S$) Share Price % Change to-date / YE (S$) 1 Samurai 2k Aerosol Catalist 16-Jan % Limited 2 Dasin Retail Trust Mainboard 20-Jan % (Trust) 3 Kimly Limited Catalist 20-Mar % 4 UnUsUal Limited Catalist 10-Apr % 5 Aoxin Q & M Dental Group Limited Catalist 26-Apr % 6 Sanli Environmental Limited Catalist 08-Jun % 7 World Class Global Catalist 15-Jun % Limited 8 HRnetGroup Limited Mainboard 16-Jun % 9 Shopper360 Limited Catalist 30-Jun % 10 Y Ventures Group Ltd. Catalist 11-Jul % 11 NetLink NBN Trust Mainboard (Trust) 19-Jul-17 2, , % 2017 Global IFRS and Offerings Services. All rights reserved. 38

39 Singapore IPO Review All listings in 2017 # Company Mainboard/ Catalist Date of listing Amount Raised (S$ million) IPO Market Cap (S$ million) Offer Price (S$) Share Price as at 15-Nov-17 (S$) Share Price % Change to-date / YE (S$) 12 Union Gas Holdings Catalist 21-Jul % Limited 13 Aspen (Group) Catalist 28-Jul % Holdings Limited 14 APAC Realty Limited Mainboard 28-Sep % 15 Keppel-KBS US REIT Mainboard (Trust) 09-Nov US$0.880 US$ % 1 2 Total count: Total: 3, , Average 52.97% Total count: Total: 2, , Average 14.51% 1 US$448.0 million (US$/S$:1.3624) 2 US$553.1 million (US$/S$:1.3624) 2017 s IPOs had a stellar performance to date, averaging 52.97% post IPO increase, much higher than 2016 s 14.51% during the same period; 50% of 2016 IPOs saw positive % share price change to YE, while 60% of 2017 IPOs saw such uptrends in share prices Global IFRS and Offerings Services. All rights reserved. 39

40 IPO market cap (S$ million) Amount raised (S$ million) Singapore IPO Review small-medium-large cap IPOs Y-o-Y contribution 2017 vs saw 1 large-cap IPO (NetLink NBN Trust) dominate the market, contributing to 48% of total IPO market capitalisation and 67% of total amount raised. 2016: 2 large-cap IPOs (Frasers Logistics and Industrial Trust and China Jinjiang Environment Holding Company Limited) contributed to 54% of total IPO market capitalisation and 49% of total amount raised. Contribution by IPO market cap Contribution by amount raised 6,000 5,000 4,396 6,555 3,130 4,000 3,500 3,662 4,000 3,000 2,500 2,263 2,447 3,000 2,000 2,364 1,620 2,000 1,500 1,100 1,000 1,347 1,805 1, , Small Medium Large Small Medium Large 2017 s small-cap IPOs also outperform 2016 s (see next slide) Global IFRS and Offerings Services. All rights reserved. 40

41 Singapore IPO Review Catalist listings in 2017 # Company Date of listing Amount Raised (S$ million) IPO Market Cap (S$ million) IPO priceearnings ( PE ) ratio Net profit margin* (%) 1 Samurai 2k Aerosol Limited 16-Jan % 2 Kimly Limited 20-Mar % 3 Unusual Limited 10-Apr % 4 Aoxin Q & M Dental Group Limited 26-Apr % 5 Sanli Environmental Limited 08-Jun % 6 World Class Global Limited 15-Jun N/A N/A 7 Shopper360 Limited 30-Jun % 8 Y Ventures Group Ltd. 11-Jul % 9 Union Gas Holdings Limited 21-Jul % 10 Aspen (Group) Holdings Limited 28-Jul N/A -0.3% 2017 (10.5 months) Total / Median / Average , % Total count: Total: % Total count: Total: , % * Net profit margins are based on the latest audited financial year as presented in the respective prospectuses. As Catalist reaches its 10 th year anniversary, 2017 sees its Catalist listings become (1) more attractive (i.e. potentially the highest funds raised in 3 years); (2) more sizeable (i.e. potentially the highest IPO market cap in 3 years); (3) increase in valuation (i.e. increase in median PE ratio); and (4) have higher overall profitability (i.e. uptrend in average net profit margin) Global IFRS and Offerings Services. All rights reserved. 41

42 Singapore IPO Review Summary of key trends in 2017 IPOs In mere 10.5 months in 2017, in comparison with 2016, saw: 61.8% more funds raised; and 49.1% larger-sized listings. More IPOs in the pipeline for remaining 1.5 months. More IPOs with public offer tranche and at strikingly higher levels median and average over-subscription at 4.5 times and 3.5 times of saw remarkable post-ipo performance, with IPOs averaging 52% increase after listing day. In only 10.5 months, 2017 s funds raised are already the highest in four years. Catalist IPOs outperform last two years upon celebrating its 10 th year anniversary. Inferences: 1. There is sufficient liquidity in the Singapore market, where individual investors have the capital to invest, are hungry to invest. Demand for new IPOs are high. 2. There is room for the Singapore market to flourish further and attract more IPOs in the years to come! 2017 Global IFRS and Offerings Services. All rights reserved. 42

43 2017 Global IFRS and Offerings Services. All rights reserved. 43

44 2017 Global IFRS and Offerings Services. All rights reserved. 44

45 2017 Global IFRS and Offerings Services. All rights reserved. 45