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How Much Would Singapore Investors Have Earned If They Invested $1,000 In Every IPO Around the SGX In 2021?
2021 has been a notable year for traders and investors. The worldwide markets crashed in March 2021 due to COVID-19 and subsequently recovered phenomenally. The Singapore Exchange (SGX) also reported there has been more interest in trading and stock investing among Singaporeans this season due to the pandemic.
Amidst this stock exchange volatility, 10 new companies were listed on the SGX. Investors have shown a strong curiosity about new stock listings, using the latest Initial Public Offering (IPO) by Credit Bureau Asia being 60 times oversubscribed. The 2021 IPO listings also differ from previous years with two (three once G.H.Y Culture shows up) mainboard IPOs that are not Real Estate Investment Trusts (REITs).
With 2021 being this type of challenging year, perhaps you may be wondering how well these 10 companies did since being listed on the SGX. We investigate the returns thus far of these 10 IPOs and compute how much you would have earned for those who have theoretically invested $1,000 in each IPO offered on the SGX in 2021.
Note: This can be a theoretical computation and excludes the potential fees incurred if you have actually committed to these IPOs. Additionally, even if you have desired to invest in every IPO, you may not be successfully allocated $1,000 worth of shares in each IPO exercise.
If You've Successfully Invested $1,000 In each and every SGX IPO In 2021
With 10 IPOs to date, you would have invested capital of $10,000 in IPOs this season. This would have yielded a return of $977 or 9.77% return on capital, excluding charges and fees. 2 of the 10 companies yield negative returns; each of which are mainboard REITs. This is in line with the overall negative market sentiment regarding REITs especially retail REITs the focus of United Hampshire US REIT, the worst performer of this years' IPOs. In contrast, Nanofilm Technologies, which is a technology-focused IPO, was the very best performer, echoing the overall market bullish sentiment on technology stocks.
If you are pickier about the IPOs and only choose to invest in mainboard listing, there were only 4 (and one yet to be listed) companies listed. Investing in only mainboard listings would require a capital of $4,000 and yield coming back of $243.52 or 6% return on capital. The 5th company, G.H.Y Culture happens to be open to the public and the IPO will end on 16 December 2021.
In comparison, for those who have put the same amount of money into an STI ETF (SGX: ES3) at the start of the year, your return to date would be -8.48%.
However, the actual returns are likely to be lower when you deduct away the fees incurred in participating in the IPO. Additionally, with Three of the 4 mainboard listings being oversubscribed, you might not be able to invest in these IPOs even if you wanted to.
Catalist And Mainboard
| # | Company | IPO Price | Current Price | Unit Boughts With $1,000 | Return To Date |
| 1 | Resources Global Development Limited | $0.20 | $0.22 | 5000 | 10% ($100) |
| 2 | Elite Commercial REIT | lb0.68 | lb0.665 | 826 | -2% (-$14.57)^ |
| 3 | Don Agro International Limited | $0.22 | $0.30 | 4545 | 36% ($363.50) |
| 4 | Memiontec Holdings Ltd | $0.225 | $0.225 | 4444 | 0% ($0.00) |
| 5 | United Hampshire US REIT | US$0.80 | US$0.57 | 892 | -29% ($321.23)^ |
| 6 | Southern Alliance Mining Ltd | $0.25 | $0.305 | 4000 | 22% ($220.00) |
| 7 | Singapore Paincare Holdings Limited | $0.22 | $0.22 | 4545 | 0% ($0.00) |
| 8 | Nanofilm Technologies International Limited | $2.59 | $3.90 | 386 | 51% ($505.40) |
| 9 | Credit Bureau Asia Limited | $0.93 | $0.999 | 1075 | 7% ($73.93) |
| 10 | Aedge Group Limited | $0.20 | $0.21 | 5000 | 5% ($50.00) |
^return computed is after conversion from foreign currency to Singapore dollar.
Mainboard
| # | Company | IPO Price | Current Price | Unit Boughts With $1,000 | Return To Date |
| 2 | Elite Commercial REIT | lb0.68 | lb0.665 | 826 | -2% (-$14.57)^ |
| 5 | United Hampshire US REIT | US$0.80 | US$0.57 | 892 | -29% ($321.23)^ |
| 8 | Nanofilm Technologies International Limited | $2.59 | $3.90 | 386 | 51% ($505.40) |
| 9 | Credit Bureau Asia Limited | $0.93 | $0.999 | 1075 | 7% ($73.93) |
^return computed is after conversion from foreign currency to Singapore dollar.
11 Companies Listed On The SGX In 2021
Here is a brief run-down of all of the 11 IPOs listed on the SGX in 2021.
#11 G.H.Y Culture & Media Holding
Date Listed: not listed
Upon successful listing, G.H.Y will be the third non-Reit (real estate investment trust) listing on the mainboard this year – a turnaround from 2021, when there were no non-REIT listing. G.H.Y is an entertainment company that produces and promotes dramas, films and concerts within the Asia-Pacific region. It also engages in talent management and make-up services, along with the provision of costumes and props. Its IPO offering costs $0.66 and the first day's trading will be on 18 December 2021.
#10 Aedge Group Limited
Date Listed: 14 December 2021 on the Catalist
Aedge Group is Singapore-based multi-services provider that covers three core areas: engineering services, transport services, and security and manpower. Additionally they provide workforce solutions for various manpower needs. The IPO offering was costing $0.20 and opened at $0.21 around the first day of trading.
#9 Credit agency Asia Limited (SGX: TCU)
Date Listed: 03 December 2021 on the Mainboard
A credit- and risk-information solutions provider, Credit Bureau Asia was the second non-REIT Mainboard listing of 2021. Similar to Nanofilm, it was massively oversubscribed (towards the tune of 60.8 times) by retail investors who have been attracted to its strong dividend return. The IPO offering was costing $0.93 and opened at $1.15 around the first day of trading.
#8 Nanofilm Technologies International Limited (SGX: MZH)
Date Listed: 30 October 2021 on the Mainboard
The first non-REIT Mainboard listing of 2021, Nanofilm Technologies was massively oversubscribed (30.6 times) by retail investors. A long-awaited technology listing to the SGX Mainboard, Nanofilm Technologies is a manufacturing technology company, providing nanotechnology solutions to a range of industries. The IPO offering was costing $2.59 and opened at $2.77 on the first day of trading.
#7 Singapore Paincare Holdings Limited (SGX: FRQ)
Date Listed: 30 July 2021 on the Catalist
Singapore Paincare Holdings comprises a group of clinics providing medical services, focusing on accessible pain care treatment in Singapore. The IPO offering was costing $0.22 and opened at $0.22 around the first day of trading.
#6 Southern Alliance Mining Ltd (SGX: QNS)
Date Listed: 26 June 2021 around the Catalist
Southern Alliance Mining Ltd is a Malaysian iron ore producer operating the Chaah Mine. They have also secured rights to exploration and mining operations at 3 potential iron ore sites in Johor, Malaysia. The IPO offering was priced at $0.25 and opened at $0.26 on its first day of trading.
#5 United Hampshire US REIT (SGX: ODBU)
Date Listed: 12 March 2021 around the Mainboard
The second Mainboard listing for 2021, United Hampshire US REIT focuses on grocery-anchored and self storage property in US. This is first US retail-focused REIT on the SGX. The IPO offering was priced at US$0.80, or S$1.12 and opened at US$0.72 on its first day of trading.
#4 Memiontec Holdings Ltd (SGX: SYM)
Date Listed: 05 March 2021 on the Catalist
While Memiontec Holdings Ltd was publicly on the SGX Catalist, there was no public offering of the placement shares. Thus, even though you wanted to, you would not have been able to invest in this water treatment company during IPO. For that purposes of this exercise, we think that you bought the $1,000 price of shares when the shares were first readily available for public trading which was in the same IPO price of $0.225.
#3 Don Agro International Limited (SGX: GRQ)
Date Listed: 14 February 2021 around the Catalist
An unexpected commodities addition to SGX Catalist, Don Agro International Limited is one of the largest agricultural companies located in Russia. The IPO offering was costing $0.22 and opened at $0.25.
#2 Elite Commercial REIT (SGX: MXNU)
Date Listed: 6 February 2021 around the Mainboard
The first Mainboard listing of 2021 and a REIT, Elite Commercial REIT gained quite a lot of attention during its IPO. A UK-focused REIT with 99% of its portfolio leased to the UK government, Elite Commercial REIT was 8.3 times oversubscribed by retail investors searching for stable dividend income. It's also the first pound-denominated REIT on the SGX. The IPO was offered at lb0.68 or S$1.21 and opened at lb0.705 on its first day's trading.
#1 Resources Global Development Limited (SGX: QSD)
Date Listed: 31 January 2021 on the Catalist
An Indonesian coal trader and coal shipping company, Resources Global Development Limited's IPO was offered at $0.20. The company stock price opened at $0.21 on its first day of trading.
