Singapore’s Big Move: A S$1.5 Billion Fund to Bring IPOs Back Home
Think of Singapore as that savvy friend who knows the best spot for a coffee – it’s a financial hotspot, but lately its stock market has felt a bit like a copycat café, copying the big shots from overseas. That’s why the government pulled out the big bucks last Friday, unveiling a S$1.5 billion co‑investment fund with Temasek. The goal? Make Singapore’s exchange the go‑to spot for ambitious, tech‑heavy companies.
Why the Shake‑Up?
- Singapore’s trading floor is still chasing the kind of IPOs that drive traffic, but has been having trouble luring the “big‑name” families that once filled the market.
- With a modest retail base (only a handful of million people), local firms have been heading to other markets for a bigger slice of the pie.
- Closing the gap means keeping the money—and the tech—closer to home.
What the New Fund Does
- It’s a partnership between the gov’t and Temasek: a giant venture‑capital powerhouse.
- Think of it like a late‑stage “angel investor” – but for IPOs. They’ll hand out capital and riches for companies that are ready to list on the Singapore Exchange.
- Managed by 65 Equity Partners, a fresh, fully‑owned platform from Temasek.
Other Boosters in the Mix
- The Singapore Economic Development Board’s investment arm, EDBI, is rolling out a S$500 million “Growth IPO Fund” to support companies that’re two (or more) rounds away from a listing.
- SGX will step up custom services for issuers, so companies get the personalized help they deserve.
- The Monetary Authority of Singapore is adding a few more feathers to the grant plan, covering listing costs and even boosting research coverage via hiring equity analysts.
The Pulse of the Market
At the launch, Gan Kim Yong (minister for trade and industry) set the tone: “We’ve heard time and again that Singapore needs a more welcoming public equity scene.” And he added a serious note that as local start‑ups mature, “a vibrant home equity market is not just nice to have, it’s essential.”
Vinnie Lauria of Golden Gate Ventures chimed in, saying the timing was perfect for the new fund, especially as SPAC interest is humming along. Right now, SGX is the first Asian bourse to allow SPAC listings, catching the tailwind after the US frenzy slowed.
Why This Matters
Imagine a catch‑phrase: the new fund is a “mile‑high jet” for Singapore’s IPOs, giving them tailwind, extra altitude, and a smoother runway. Together with the EDBI fund and the revamped grants, the package is poised to give Singapore’s public market a fresh breath of life.
Bottom Line
It’s not a silver bullet, but it’s a sturdy shovel ready to dig a better future for Singapore’s public equity market. With better infrastructure, support, and a friendly breeze, the Exchange is now a compelling option for high‑growth companies looking to go public and stay close to what makes Singapore special.
