Struggling to Find Their Footing: Catalist Listings on the Singapore Exchange
Many have performed poorly since listing, with prices tumbling on the first day of trade and often seeing little to no trading volumes as a result
A Dearth of New Listings
AMID a dearth of new mainboard listings on the Singapore Exchange (SGX), initial public offering (IPO) activity on the local bourse has been propped up by a handful of Catalist listings over the last two years. But the majority of these new entrants have struggled to find their footing.
The Challenges Facing Catalist Listings
The poor showing from these recently listed Catalist companies, however, will not be an easy issue to solve. For starters, industry watchers are divided on the reasons for these counters’ underperformance.
Structural Issues or Market Problem?
While some believe the subdued post-listing performance exposes gaps in the structure of SGX’s junior board, others say the issues stem from low valuations and are more of a market problem.
Conclusion
The poor performance of Catalist listings on the Singapore Exchange highlights the challenges faced by these companies in finding their footing in the market. The reasons for this underperformance are complex and multifaceted, and will require a nuanced approach to address.
FAQs
Q: What is the main reason for the poor performance of Catalist listings?
A: Industry watchers are divided on the reasons for the poor performance, with some attributing it to gaps in the structure of SGX’s junior board, while others say it is due to low valuations and is a market problem.
Q: What is the impact of this poor performance on the Singapore Exchange?
A: The poor performance of Catalist listings has resulted in subdued trading volumes and prices tumbling on the first day of trade for many of these companies.
Q: What can be done to address the challenges facing Catalist listings?
A: Addressing the challenges facing Catalist listings will require a nuanced approach that takes into account the complex and multifaceted reasons for their poor performance.
Q: What is the significance of the Singapore Exchange’s junior board?
A: The Singapore Exchange’s junior board, also known as Catalist, provides a platform for smaller and growth-oriented companies to list and raise capital. The poor performance of these companies highlights the challenges they face in finding their footing in the market.
