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[SINGAPORE] At least 16 companies are on the delisting track as of the first week of May this year. They have either delisted, confirmed delisting dates or announced plans to exit the Singapore Exchange (SGX).
Meanwhile, only one initial public offering (IPO) has taken place so far this year – car dealer Vin’s Holdings, which listed on the Catalist board in mid-April.
The latest to announce plans to delist includes nursing operator Econ Healthcare (Asia) as well as hospitality player ICP and hotel group Amara Holdings from the healthcare and hospitality sectors. In the technology sector, IT solutions provider Procurri Corp and technology products distributor Ban Leong are preparing to delist.
Meanwhile, in the engineering and industrial sector, lifting service provider Sin Heng Heavy Machinery and engineering company PEC are also planning to go private. Property developers Sinarmas Land and SLB Development are also following suit.
Already four firms have delisted from the SGX this year: offshore oil-and-gas contractor Dyna-Mac and software company Silverlake Axis in January, shipping firm Jes International in February, and waste management company 5E Resources in March
Three companies have already secured approval from their shareholders and announced their delisting dates. SMI Vantage is set to delist on May 15 while Japfa and Paragon Real Estate Investment Trust (Reit) are expected to delist in June after accepting privatisation offers.
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Market watchers told The Business Times that such delisting activity has been significantly influenced by recent equity market volatility, amid rising geopolitical tensions, tariffs, and broader global economic uncertainties.
“Companies exposed to international trade risks and market fluctuations may find public markets increasingly challenging due to heightened volatility and unpredictable share price movements,” said Ooi Chee Keong, partner and head of capital markets at Forvis Mazars in Singapore.
For these companies, he believes privatisation offers an alternative strategy that can provide greater operational flexibility, address valuation concerns, and protect them from ongoing market turbulence.
Jason Saw, group head of investment banking at CGS International, said: “There is increasing private capital looking for good businesses to invest in, including private equity, which has lots of dry powder to do acquisitions. This makes it much easier for the owners to find suitable partners to take the companies private.”
More to come?
Ooi believes companies operating in trade-sensitive sectors such as manufacturing, logistics, or agri-food may find privatisation particularly appealing under current market conditions.
On the other hand, Paul Chew, head of research at Phillip Securities Research, warned that “owners and private equity may turn more cautious in delisting due to the economic uncertainty and leverage required to fund the privatisation”.
While caution is warranted, Chan Yew Kiang, Asean IPO leader at EY, believes that it is too early to assess the full impact of these factors. He noted that with the recent announcement of trade tariffs and ongoing government negotiations, it remains “premature to determine if delisting activities will be impacted”.
He added that the decision to delist is very much dependent on the specifics of each company’s situation.
Appeal of going private
Market watchers also pointed to several underlying factors as key drivers behind the growing wave of delistings on the local bourse. These include prolonged undervaluation, the high cost of maintaining a listing, more favourable valuations in private markets, and shifting corporate priorities.
Tay Hwee Ling, accounting and reporting assurance leader at Deloitte Southeast Asia, attributes part of this trend to the growing availability of private capital. This shift, she added, “allows companies to focus on long-term growth without the pressure of public scrutiny and regulatory compliance”.
Building on this, Ooi noted that Singapore’s delisting wave mirrors a wider global shift. “Internationally, many stock exchanges, including those in Hong Kong and London, have experienced similar patterns of heightened delisting activity, driven by liquidity concerns, valuation pressures, economic uncertainties, and increased regulatory oversight,” he explained.
Ooi pointed to recent privatisation cases in Singapore – such as PEC, Econ Healthcare, Paragon Reit, SLB Development, and Japfa – as clear examples of companies deterred by low trading volumes and persistent undervaluation. “Given that these underlying conditions remain unchanged, it is reasonable to anticipate the continuation of this delisting trend into the foreseeable future,” he said.
However, Tay cautioned that privatisation comes with challenges such as illiquidity and reduced transparency for stakeholders. “Ultimately, an IPO is typically not the end goal in the life cycle of a company,” Tay added, noting that companies may have different plans for their next phase after being listed for some time.
This is particularly evident among smaller firms, which make up the majority of those choosing to delist.
Many fall within the small- to mid-cap range by international standards, limiting their institutional coverage and investor interest. “They are more prone to persistent undervaluation and unable to fully benefit from public market access – prompting many to view delisting as a more strategic and cost-effective option,” said Ooi.
In addition to these issues, he sees the increasing costs associated with compliance, regulatory reporting, and governance obligations further diminishing the appeal of remaining publicly listed.
Exit for minorities
Chan said that delistings sometimes pave the way for corporate relistings in a different and enhanced form.
“Delisting, often with an offer to acquire shares from minority shareholders, presents an opportunity for minority shareholders to realise the value of their shareholdings at a premium to quoted trading prices,” he added.
Still, the growing number of delistings has raised concerns about the long-term competitiveness and appeal of the SGX.
Ooi pointed to the disparity between delistings and IPOs, with 20 delistings in 2024 compared to just four IPOs, and only two IPOs expected this year – Vin’s Holdings and YLF Group Marketing on SGX’s Catalist board.
Chan highlighted that the Monetary Authority of Singapore’s (MAS) review group is taking steps to revive the market but said that resolving the valuation and liquidity issues is no easy task, as it involves a range of stakeholders with differing priorities.
The MAS equity market review group’s proposals come into play here, he added, as they are designed to tackle these issues sustainably over the long term. “Should valuation and liquidity improve, we will see a more vibrant equity market and delisting will likely not be a concern then,” he noted.
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