Market Snapshot

Singapore stocks opened lower on Monday. STI down 0.12%; SIA up 0.6%; Frasers L&C Tr down 4%; Sinarmas Land, CityDev down 1%.

Stocks in Focus

Frasers Centrepoint Trust (FCT): The acquisition of Northpoint City’s south wing may be financed either with or without the issuance of perpetual securities, said FCT’s manager in a bourse filing on Saturday. Proceeds from FCT’s recent equity fundraising have been used to repay its existing debt. The trust will also draw down additional debt financing to pay for its recent acquisition of Northpoint City when the acquisition is finalised. Should the manager issue perpetual securities, the proceeds will be used to pay its existing debts. An illustrative coupon of 4.2 per cent per annum was assumed for the potential issuance of perpetual securities, while an all-in interest rate of 3.3 per cent was assumed for new debt financing. Units of FCT closed 1.4 per cent or S$0.03 higher on Friday at S$2.19.

Sinarmas Land: Lyon Investments said on Sunday that its offer price of S$0.375 per share of property developer Sinarmas Land is final, and that it does not intend to revise the current offer price. It will also extend the closing date of the offer from May 29 to Jun 2, 5.30 pm. The announcement comes after it raised the offer price on May 10. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of the company’s shares for more than six years. The counter closed 1.3 per cent or S$0.005 lower at S$0.375 on Friday.

Creative Technology: The company has named Freddy Sim, the younger brother of its late founder Sim Wong Hoo, as chief executive officer. The appointment took effective on Friday. Creative said in a bourse filing the same day that the 67-year-old, as an entrepreneur for more than 40 years in the field of consumer electronics and technology, would accelerate Creative’s renewal journey. He will be paid a nominal monthly salary of S$1 a month, just like his brother, the founder and CEO of Creative who died in 2023 after having revolutionised sound quality in computers in the late 80s with the Sound Blaster sound card. Creative’s interim CEO Tan Jok Tin will remain as executive chairman. The counter closed at S$0.90, S$0.02 or 2.3 per cent higher, before the announcement.

Trading halt

Econ Healthcare (Asia): The nursing home operator called for a trading halt before the market opened on Monday, pending announcements to be released. It was previously reported that US private equity firm TPG, through its special purpose vehicle, is looking to take Econ Healthcare private by way of a scheme of arrangement, in a near S$88 million deal. Incorporated in the Cayman Islands, the offeror Enabler Bidco is looking to acquire all of the issued shares of Econ Healthcare. As at the announcement on Feb 14, the Catalist-listed company has an issued and paid-up share capital comprising 265.9 million shares. Each shareholder will be entitled to receive, at their election, either S$0.33 per share in cash, or S$0.224 per share in cash and about 0.32 Enabler Holdco shares. The counter closed flat at S$0.35 on Friday.

SG Local News

Singapore Bourse Risks Further Delistings Despite New Proposals

Singapore’s move to simplify the initial public offering process, part of recent measures to boost its moribund equities market, is unlikely to reverse a yearslong trend of delistings crowding out new listings, analysts say.

The Monetary Authority of Singapore on Thursday began seeking feedback on proposals to streamline prospectus disclosures for IPOs. Singapore Exchange Ltd.’s regulatory arm also proposed listings-related reforms.

“We believe that the trend of delistings will continue in the near future, driven by long-term structural challenges such as low liquidity, compressed valuations, and the growing attractiveness of private capital,” said Shekhar Jaiswal, an analyst at RHB Bank Bhd.

Some Chinese Companies Eye Singapore Listings to Expand Markets Amid Trade War

At least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in Southeast Asia amid global trade tensions.

The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group, said the sources, who have direct knowledge of the matter, but declined to be named or to name the firms as the plans are not finalised.

The listings would give a boost to Singapore Exchange Ltd (SGX), which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes.