How have Singapore IPOs been performing?
From Grab to Ohmyhome, we take a look at how the newest Singapore-linked stocks have fared since the companies went public.
Recent Singapore-related IPOs: How are the stocks performing?
There have been several high-profile Singapore-listed, Singapore-founded or Singapore-based initial public offerings (IPOs) and flotations in the last three years.
They include Grab, PropertyGuru, GoTo, Nio, and OhMyHome.
Below, we take a look at how these listings have performed since their stock market debuts.
Share price change since IPO*
|1. Grab Holdings Ltd||
|2. PropertyGuru Group Ltd||18/03/2022||US$8.33
|3. Nio Inc||20/05/2022||US$16.90
|4. Ohmyhome Ltd||24/03/2023||US$4
|5. GoTo Gojek Tokopedia PT Tbk||14/04/2022||338 rupiah (S$0.031)||121 rupiah (S$0.011)||-67.8%|
*as of 13 June 2023
Grab (NASDAQ: GRAB)
The ‘superapp’ has seen its share price drop by over 70% since its highly anticipated debut on the Nasdaq Exchange in December 2020.
Grab shares had performed well initially, rising to a peak of US$16.75 (S$22.49) in January 2021, before hitting similar price levels again in November 2021.
However, the stock has fallen steadily since then, and is currently trading at around US$3.50 (S$4.70) a share.
Although the company narrowed its losses in the first quarter of 2023 and grew its revenue by 130% year-on-year, that did little to appease the market. Other key metrics, including gross merchandise value (GMV) – the total value of merchandise sold over a period of time – grew by 3%, which was lower than expected.
PropertyGuru (NYSE: PGRU)
PropertyGuru shares have fallen nearly 50% since its flotation in March 2022.
Singapore’s top property website and marketplace by market share, has been unable to repeat the performance of its first day, in which it closed slightly above its launch price of US$8.46 (S$11.36).
The stock saw its sharpest decline in May 2022, after the company reported higher net losses for the first quarter of 2022.
For its latest quarter (first quarter of 2023), the company reported net losses of S$10 million, down from S$120 million a year ago.
For the rest of FY2023, the company reaffirmed its full year 2023 outlook of revenues between S$160 million and S$170 million and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) between S$11 million and S$15 million.
Some short-term headwinds include actions by the government of Vietnam to rein in the availability of consumer credit, residual political uncertainty in Malaysia, and property taxation and stamp duty increases in Singapore as a mechanism for prioritizing affordable home ownership for Singaporeans.
Nio (SGX: NIO)
Shares of Chinese electric vehicle maker, Nio, are down over 50% since its debut on the Singapore Exchange (SGX) in May 2022.
The highly touted SGX listing (Nio’s third overall listing after US and Hong Kong) initially saw share price rally to a high of US$24 (S$32.22) a month after launch, staying above US$20 (S$26.85) a share until September 2022.
Since then, the stock has dwindled as much as 65%, thanks to a few factors, including an ongoing EV price war among EV manufacturers in China, end-2022 Covid lockdowns, as well as the end of EV subsidies.
While a recovery is expected in the second half of 2023 for Chinese EV companies as the country reopens, some analysts are of the view that Tesla will maintain its share of the Chinese EV market, which could mean continued downsides for Nio shares.
Ohmyhome (NASDAQ: OMH)
Ohmyhome shares are up 30% since the listing went live on the Nasdaq Exchange in March 2023.
Although one of the smaller IPOs on this list, the stock has turned in a healthy performance so far, rallying as much as 330% at the start of May 2023.
It is unclear what caused the stock to surge from US$6.20 (S$8.32) a share to US$18.50 (S$24.84) a share between 6 May and 12 May. However, the boost was short lived, as the stock came crashing back down to under US$6 (S$8) a share the following week.
On 15 May, Ohmyhome Ltd. signed an agreement to invest in Ohmyhome Property Inc.’s Philippines operations, marking its official expansion into the Philippines market.
GoTo Gojek Tokopedia (IDX: GOTO)
Shares of GoTo, the parent organisation formed via a merger of Indonesian ride hailing company Gojek and e-commerce firm Tokopedia, has plunged by nearly 70% since going public in April 2022.
The GoTo stock fell amid bigger losses in 2022, and after investors began to sell off their stakes upon the expiry of a lock-up date on shareholders.
Looking ahead, the company expects gross transaction value (GTV) growth to slow in the second quarter of FY2023 as it further prioritises high-quality users.
Additionally, the shift in its user base towards more profitable users along with the streamlining of costs and the driving of further efficiencies across the organisation are expected to yield sustainable profitability over the long term.
As of June 2023, the company has a market cap of S$13 billion. GoTo’s IPO was one of Asia's largest IPOs in 2022.
Singapore IPO market: what’s the latest?
On homesoil, although more IPOs were completed on the Singapore Exchange (SGX) in 2022 – 15 versus 13 in 2021, the total IPO proceeds raised in 2022 was S$1.12 billion less than in 2021.
One reason for the drop was the lack of new Real Estate Investment Trust (REIT) listings being completed in 2022, according to PwC Singapore. However, excluding the listing of the REITs in 2021, the total proceeds raised in 2022 increased year-on-year to S$0.58 billion from S$0.37 billion.
‘The higher number of IPOs in 2022 on the SGX was driven by the listing of the first three Special Purpose Acquisition Companies (SPACs) with total proceeds from listings amounting to S$528 million,’ the research found.
Vertex Technology Acquisition Corporation (VTAC), one of three SPACs listing in 2022, was the largest IPO on the SGX Mainboard with S$208 million fund raised. The largest IPO on the SGX Catalist was the listing of Alpina Holdings Limited with a deal value of S$11.47 million.
The IPO market, in Singapore and globally, remains lacklustre as of the first quarter of 2023, with proceeds down 61% YoY.
What are the risks of investing and trading in newly-listed stocks?
All trading and investment activity involves risk. Newly-listed shares have additional risks, including:
- Not knowing about information that’s critical to a company’s share price, i.e. ongoing legal cases and intellectual property that isn’t patent protected
- Little to no trading track record to refer to for informed decision making
- Inflated market expectations that don’t materialise
- A company not meeting its target market cap
It’s vital that you have all the relevant information before you take any position. When trading or investing in shares, you’ll find useful information in company prospectuses, admission documents and more.
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