Experts Expect Pickup in IPOs, Corporate Deals Here Despite Rising Volatility

Firms seeking expansion and growth may look to capital markets here to raise funds

- Kang Wan Chern

Despite rising market volatility triggered by US President Donald Trump's protectionist trade policies, some experts reckon that corporate deal-making opportunities will persist in Singapore as companies reconfigure their strategies and supply chains.

Even though a decline in corporate deals and listings is expected globally as volatility rises, firms seeking gunpowder for growth and expansion may look to capital markets here to raise the funds they need, experts said.

Companies with plans to grow may list on the Singapore Exchange (SGX) as a way to fuel expansion, especially if funding options in other markets hit harder by global volatility tighten, said Mr Ong Hwee Li, chief executive of SAC Capital.

Despite Mr Trump's tariff pause, foreign businesses will want to understand how to leverage Singapore's capital markets, which may spur deal-making activities in the private and public spaces here, he added.

Mr Ong noted that the uncertainties arising from the tariffs may also impact ongoing privatisation deals on the SGX.

"In general, privatisations will slow down as the value the offeror is willing to pay to delist a company and take it private may be significantly lower," he told The Straits Times.

"For a family-owned listing, it will depend on whether the family is of the view that the next generation can manage the business well and whether the family can get a good value for its assets or business from the market.

"On balance, I feel deal-making activities will increase."

Mr Jason Saw, group head of investment banking at CGS International, said that while a slowdown in the economy will impact business sentiment and earnings in Singapore, the current environment could represent a new cycle of growth for some companies.