SGX‐listed follow‐on equity deals have raised US$2.4b so far this year.

Shares placements are gaining favour again among Singapore‐listed companies as improving sentiment makes it easier to tap equity capital markets, observers say.

Singapore‐listed companies priced about $599 million of new placement shares this month, according to data compiled by The Business Times and Shareinvestor.com.

The deals came at an average discount of 8.4 per centto the volume‐weighted average price ofthe stock before the deals were priced. Year‐to‐date, Singapore‐listed follow‐on equity deals have raised US$2.4 billion so far,significantly more than the year‐ago volume of US$502million, according to data byDealogic.

Dealogic's numbers include sales of existing shares by shareholders, such as the Government of Singapore Investment Corp's $1.6 billion sale of Global Logistic Properties(GLP)shares in February, and so do not give a precise picture of new‐share placement volumes. Even taking out the sale by the GIC, however, year‐on‐year comparisons still reflect stronger activity.

From a demand perspective, investors have been increasing exposure to equities.

Source: AmFraser