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Singapore IPO market shrinks 72% in first half of 2014

Companies raised US$773.6 million on the Singapore Exchange during the first six months of the year, down from US$2.77 billion during the same time in 2013, according to data by Thomson Reuters.

SINGAPORE: Proceeds from initial public offerings (IPOs) in Singapore shrank 72 per cent in the first half of 2014 from a year ago, according to data compiled by Thomson Reuters, reflecting the subdued trading interest so far this year.

Companies raised US$773.6 million on the Singapore Exchange (SGX) during the first six months of the year, down from US$2.77 billion during the same period last year.

The largest IPO so far this year was the one by PACC Offshore Services Holdings, which raised US$375.5 million. Bank of America Merrill Lynch, DBS Bank and Oversea-Chinese Banking Corp (OCBC) were the issue's joint book runners.

When secondary stock offerings and convertible securities are included, Singapore-listed equity and equity-related transactions totalled US$6.9 billion - a 42 per cent decline from just under US$12 billion in the first half of 2013, Thomson Reuters said.

DBS is currently the top book runner for equity and equity-linked deals issued by Singapore companies, with 19.1 per cent market share. This translated to US$268.1 million in related proceeds. OCBC is in second place with 12.3 per cent share, while Standard Chartered is third with 11.9 per cent.

JP Morgan, which topped the ranking in the first half of last year, slipped to joint-ninth alongside Malaysia's RHB.

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