Singapore Exchange Eyes Up to 30 IPOs in 2026 as Market Conditions Improve

Foundation Healthcare Tests Appetite

Singapore Exchange is positioning for a potentially robust listing year, with expectations of 20 to 30 initial public offerings in 2026 after recording 15 in 2025. As of late May, five companies had already listed, and four more are preparing to debut in coming months.

Foundation Healthcare Holdings leads the current wave. The Temasek-backed private healthcare operator opened its IPO on July 1, seeking to raise $242 million at 76 cents per share. The company operates four medical centres and will achieve a $1 billion market capitalisation upon listing. According to people familiar with the transaction, the offering attracted multiple times oversubscription, with $118 million committed by 10 cornerstone investors and the remainder allocated to public and international buyers. Trading is scheduled to begin July 8.

Three other companies filed preliminary documents in recent days. Electrical infrastructure provider EGP Energy Corporation and logistics firm All-Link Air & Sea both lodged prospectuses on June 30. Data centre operator AirTrunk, backed by Blackstone, reportedly filed confidentially for a real estate investment trust IPO that could raise approximately $1.5 billion, though timing remains unconfirmed.

Post-Listing Performance Clouds Outlook

The pipeline faces headwinds from recent track records. Roughly 60% of companies that listed over the past year have struggled after debut. Co-working operator JustCo, which began trading May 22, was down more than 40% from its offer price within a month.

These results may dampen enthusiasm for future offerings and prompt companies to delay listings or consider alternative regional exchanges. The sustainability of pre-listing momentum will determine whether current interest translates into completed deals.

Currency Volatility Hits Asia

The Japanese yen experienced sharp swings against regional currencies during the week. It fell to an all-time low of 125.7 against the Singapore dollar on July 1 before rebounding 0.6% to 124.725 the following day. Against the US dollar, the yen breached 162, marking a four-decade low on June 30.

The weakness stems from persistent interest rate differentials. Japan's central bank has raised rates multiple times since 2024, reaching a 31-year high in June, yet the gap with US Federal Reserve policy remains wide. Investors continue borrowing yen to invest in higher-yielding assets elsewhere, pressuring the currency. Market participants expect both central banks to tighten further, suggesting the differential will persist.

Utility Cost Pressures Mount

Singapore businesses are absorbing sharp increases in energy tariffs. Household electricity rates will rise 17% and town gas tariffs 7.1% for the July-September quarter, forcing companies to either pass costs to customers or reduce consumption.

Sembcorp Industries, the largest utilities firm by market value on SGX, saw shares fall 7.86% over the week to close at $5.98 on July 3. Keppel Infrastructure Trust dropped 2.75% to 53 cents over the same period. Manufacturing firms surveyed by the Singapore Business Federation in the first quarter reported the strongest anticipation of cost pressures ahead.

Access Reforms and Governance Changes

SGX is lowering barriers for retail participation. From October 5, the standard board lot size will drop from 100 units to 10 units for instruments priced between $10 and $100, and to one unit for those above $100. The change affects 11 stocks initially, including DBS (trading around $65-66), OCBC (below $25), and UOB ($37-40).

The exchange also introduced broker oversight enhancements effective July 1. Depository agents will be allowed to hold securities in omnibus custody accounts from July 15, subject to new minimum service standards designed to protect shareholder rights. By 2027, all member brokers must notify customers of annual general meetings unless clients opt out.

Property and Mining Moves

Frasers Centrepoint Trust sold White Sands mall in Pasir Ris to Growth Capital, an entity linked to Jack Investment Group, for $467 million. The transaction is expected to close by end-September, leaving FCT with eight retail properties.

Mining firm CNMC Goldmine received in-principle approval to transfer from Catalist to the mainboard, pending shareholder vote. The company posted record revenue of $165.7 million for financial year 2025, more than double the prior year, driven by gold's rally to an all-time high of $5,589.38 per ounce in January. Shares rose over 9% to $1.21 on July 3 following the announcement.

The Federal Open Market Committee minutes from the June meeting under new chairman Kevin Warsh are due July 9, which may clarify the Fed's stance on rates after holding the target range at 3.50% to 3.75%.