The flow of initial public offerings (IPOs) has been slow this year, but mergers and acquisitions (M&As) and private equity transactions have just about made up for it.
There have been 143 equity deals in Singapore in this half of the year, worth a combined US$18.7 billion (S$23.4 billion), according to American Appraisal, a United States-based valuation and advisory firm.
These include initial public offerings, M&As and private equity and venture capital investments.
The total is lower than the 179 deals valued at US$22 billion in the same period last year; however, that number was boosted by the US$11.2 billion takeover of Fraser and Neave.
M&As this year have comprised the bulk of the overall capital markets and transaction activity with 116 deals valued at US$17.5 billion.
Private equity and venture capital investments in Singapore companies have risen to US$442 million from US$182 million last year, American Appraisal added.
The largest private equity transaction here was the US$162.5 million investment in Singapore-listed Global Logistic Properties by a Chinese consortium led by Bank of China.
Another notable transaction involved French luxury goods giant LVMH Moet Hennessy, whose private equity arm bought a US$100 million majority stake in Singapore club and lounge operator Ku De Ta Group. The unit also shelled out US$100 million for a stake in restaurant firm Crystal Jade Culinary Concepts.
"The IPO market in Singapore has been relatively quiet since the beginning of the year with only six listings valued at US$694 million," said American Appraisal. This included the mainboard listings of PACC Offshore Services Holdings and OUE Commercial Reit, which raised a combined US$581.9 million.
"Deal pipeline for Singapore in the second half of the year looks strong," it added.
Takeover offers potentially valued at over US$10 billion, such as OCBC Bank's offer for Hong Kong's Wing Hang Bank and Frasers Centrepoint's offer for Australand in Australia, "could provide a strong pipeline over the second half of 2014 if they materialise".
Private equity deals in the pipeline include KKR's offer to acquire Goodpack, which could be worth over US$1 billion, said American Appraisal.
"Although IPO markets have been low in activity in the first half of the year, activity is also expected to pick up in the next few months."
The IPO scene in other markets has been far more lively.
There were a total of 588 deals worldwide in the first six months of the year, said a report by professional services firm EY.
They raised around US$117.7 billion, an increase of 67 per cent on the same period last year.
Asia-Pacific exchanges hosted more IPOs in the first half of 2014 than any other region with 217 deals raising US$33.7 billion. The value of the deals was 45 per cent more than last year.
This article was first published on June 27, 2014.
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