SGX sees steady stream of delistings amid market pressures
With heightened market conditions over the past months, the ripple effect is becoming evident with companies jumping onto the bandwagon of delisting.
This phenomenon comes at no surprise with barely a handful of companies going public in the past year, coupled with the recent equity market volatility amidst tariffs and rising geopolitical tensions — further setting back the local market.
Our Partner and Head of Capital Markets, @/Ooi Chee Keong, engaged with @/TheBusinessTimes in a recent interview on the steady stream of delistings and market pressures, sharing his expert opinion on the strategic move by companies from public to private.
"Companies exposed to international trade risks and market fluctuations may find public markets increasingly challenging due to heightened volatility and unpredictable share price movements," he said.
By pursuing the route of privatisation, Chee Keong elaborated that it offered an alternative strategy to companies providing greater operational flexibility, address valuation concerns and protect them from ongoing market turbulence.
Additionally, he observed that many of these companies choosing to delist fall within the small- to mid-cap range by international standards, which limits their institutional coverage and investor interest.
He noted, "They are more prone to persistent undervaluation and unable to fully benefit from public market access– prompting many to view delisting as a more strategic and cost-effective option."
Read the full article on The Business Times.
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