RTOs, IPOs performing differently on SGX
Capital World had a tepid start when it resumed trading yesterday, following a reverse takeover (RTO) by Terratech Group.
Shares of the property developer closed at 18.2 cents in its first session after a backdoor listing on the Catalist board - 9 per cent down from the 20 cent issue price.
This reflected a generally mixed performance among the RTO listings on the Singapore Exchange this year, while initial public offerings (IPOs) have performed much better.
Capital World was the third RTO listing here this year, following Pacific Star Development and Hatten Land.
All three are property firms with a strong focus on Malaysia.
Pacific Star Development debuted on Feb 16 with an issue price of 26.7 cent, but the shares have pared 21.3 per cent to 21 cents.
Meanwhile, the five IPOs this year - Samurai 2K Aerosol, Dasin Retail Trust, Kimly, UnUsUaL and Aoxin Q & M - generally had a far more positive showing.
Entertainment event firm UnUsUaL has been the most bullish.
It commenced trading on April 10 and closed at 48 cents yesterday, up a whopping 140 per cent from its 20 cent offer price.
Coffee shop operator Kimly has also been a market favourite since its listing on March 20, having gained 80 per cent to close at 45 cents yesterday, compared with its 25 cent offer price.
The latest IPO in the market, Chinese dental firm Aoxin Q & M, listed on April 26 with an offer price of 20 cents. It closed up 35 per cent from that level at 27 cents yesterday.
"The IPOs this year have done quite well. In fact, all of them, except Dasin, have jumped from their offer prices and this is quite impressive," said remisier Desmond Leong.