Market Snapshot
Singapore stocks opened lower on Friday. STI fell 0.1%; NIO fell 2%; DBS fell 1%; SingTel rose 0.3%.
Stocks to Watch
CapLand IntCom T: The trust will issue 377.3 million new units to raise gross proceeds of about S$757.2 million from its preferential opening that closed on Tuesday. Together with around S$350.3 million raised from an earlier private placement, this brings gross proceeds to about S$1.1 billion. Most of the proceeds will be used to fund a proposed acquisition of a 50 per cent interest in Ion Orchard mall and its connecting underpass, Ion Orchard Link, from its sponsor CapitaLand Investment. The preferential offering units are expected to be listed and quoted on the mainboard of the Singapore Exchange from 9 am on Oct 2. Units of CICT closed on Thursday up S$0.04 or 1.9 per cent at S$2.14, before the announcement.
UOL, SingaporeLandGrp: The property developers are in preliminary confidential discussions with an unnamed party to potentially acquire a 50 per cent stake in a Sydney office and retail building. The transaction is not guaranteed as discussions are ongoing, but both companies said they will make an announcement if there are further material developments. The Australian Financial Review reported earlier that Canadian property group Brookfield was selling UOL its half stake in a 28-storey Sydney office tower for a deal consideration between A$450 million (S$397 million) and A$480 million, representing a 6.2 per cent capitalisation rate. Shares of UOL rose S$0.07 or 1.3 per cent to S$5.58 on Thursday, while SingLand closed S$0.01 or 0.6 per cent lower at S$1.81.
AMOS Group: The offshore oil and gas equipment manufacturer on Wednesday announced it received a privatisation offer of S$0.07 a share from its executive chairman Kyle Shaw. Shares of Amos closed on Thursday S$0.016 or 30.2 per cent higher at S$0.069 upon resuming trading on the same day at 4 pm. Trading in its shares were halted since Tuesday morning after the counter ended at S$0.053 the day before.
SG Local News
Singapore Factory Output Beats Forecasts with 21% Rise in August
Singapore’s manufacturing output expanded for a second consecutive month in August, driven by robust production in the electronics industry.
Total output soared by 21 per cent year on year, after an upwardly revised 2 per cent growth in July and a 4.2 per cent drop in June.
Economists in a Bloomberg poll had predicted an 8.6 per cent expansion.
Singapore Entertainment Firm Neon Is Said to Weigh IPO Next Year
Immersive entertainment group Neon is considering an initial public offering in Singapore that may raise as much as S$500 million ($389 million), according to people with knowledge of the matter.
The company, which is backed by Temasek Holdings Pte.’s 65 Equity Partners, has interviewed financial advisers for a potential offering that could take place as soon as next year, the people said, asking not to be identified as the process is private. A first-time share sale may raise S$400 million to S$500 million, the people said.
Over 4,700 Companies Prosecuted in 2023 for Failing to File Tax Returns or Doing So Late: Iras
Over 4,700 companies were prosecuted in 2023 for failing to file their tax returns or doing so late, said the Inland Revenue Authority of Singapore (Iras) on Sept 26.
This was an increase from 2022, when more than 4,400 companies were prosecuted for these actions, according to Iras data provided to The Straits Times. In 2021, over 5,400 companies were prosecuted for not filing their tax returns or filing them late.
Singapore Exchange Insiders Cast Doubt on Stock-Market Revival
Singapore has kicked off a big effort to revive its withering stock market. Inside its exchange operator and among market participants, there is deep pessimism that the reboot will succeed.
The city-state’s government unveiled a task force in August to come up with ways to revitalize the S$811 billion ($632 billion) market, which lost its title as Southeast Asia’s largest after delistings far outnumbered initial public offerings.
But within Singapore Exchange Ltd., there has been a sense of defeatism among staffers in the equity capital markets division, which is responsible for bringing in IPOs, according to people familiar with the matter. The group’s performance targets include more than doubling the number of new listings from seven in the last fiscal year that ended in June, and preventing more delistings, yet staffers believe the goals are unrealistic and impossible to achieve, the people said.
