Singapore investment banking fees up 79% to $176.5m in Q1

M&As are off to a slow start whilst there was only one IPO by a local company so far.

Singapore investment banking activities totalled US$176.5m in fees so far in 2021, already 79% higher than in Q1 2020, according to data compiled by Refinitiv.

Equity and equity-linked (ECM) issuance by Singaporean companies raised US$875.8m so far in 2021, a 7.3% increase from Q1 2020. Follow-on offerings grew 89% from the comparative period last year, with US$362.4m worth of proceeds, Refinitiv found.

Despite this, ECM underwriting fees fell 42.6% to US$17.1m over the same period.

There is only one initial public offering (IPO) by a Singaporean company so far this year – Aztec Global’s US$221.1m SGX IPO. In contrast, there were at least 8 IPOs by Singaporean issuers during the first quarter of 2020, collectively raising US$624.4m.

By sector, real estate accounted for 37.1% of Singapore’s ECM proceeds, followed by financials and technology with 33.4% and 25.2% market share, respectively. Amongst institutions, DBS Group currently leads Singapore’s ECM underwriting rankings, with a 20.8% market share and US$182.1m in related proceeds.

In the debt capital markets, primary bond offerings from Singapore-domiciled issuers witnessed a record start raising US$10b so far this year, more than double or 122.3% higher than in Q1 2020.

Singaporean companies from the financials sector captured 62.9% market share and raised US$6.3 billion during the first quarter of this year, almost triple or a 188.4% jump  from the same period last year. Government & Agencies followed behind with 12.8% market share worth US$1.3b, a 153.5% rise from a year ago.

Real Estate rounded out the top three with an 11% market share. Once more, DBS Group leads the Singapore bonds underwriting with US$1.3b in related proceeds, or 12.9% market share.

Slow start for M&As
Announced mergers & acquisitions (M&A) started slow in 2021 with deals just amounting to US$16.5b, 31.6% lower compared to the first quarter of 2020. Four deals announced are said to be worth above US$1b, with an aggregate total of US$8.3b.

Of these billion-dollar M&A deals announced, not one is greater than US$5b, noted Refinitiv. In contrast, in Q1 2020, of the four billion-dollar deals announced, one deal surpassed US$5b in quantum.

Singapore-targeted M&A activity amounted to US$2.2b, down 80.7% compared to the same period in 2020. Domestic M&A is down 94.6% over the same period of comparison and totaled US$499.2m so far this year.

Inbound M&A activity reached US$1.7b, down 20.8% from Q1 2020; whilst outbound M&A activity by Singaporean companies reached US$9.5 billion in deal value, only 7.5% lower in value from Q1 2020. United States was the most targeted nation capturing 57.8% market share, Refinitiv data found.

Majority of the activity involving Singapore happened in the industrials and high technology sectors, Refinitiv found.

The Industrials sector captured 32.3% of market share and totaled US$5.3b, up 72.8% from a year ago. This is followed by High Technology, which saw the highest volume of deals, with a 22.8% market share by value. Energy & Power closed the top three with a 12.6% market share in value.

Amongst institutions, Goldman Sachs currently leads Singapore’s M&A league table rankings so far in 2021, with 37.6% market share and US$6.2b in related deal value.


Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


Bank DBS Indonesia avails fast, reliable and sustainable corporate banking
Its ESG-based bank financing, as reflected in sales and asset under management, proves to be an IDR1.8t (US$117m) success.
Italy brings its strong suits to Singapore’s fintech expo
Italian trade executive says 9 firms at the Singapore Fintech Festival 2023 exemplify the diverse range of products and expertise Italy can bring to the table.
Digibank by DBS sets new digital banking standards
Apart from speed and convenience, DBS stays ahead with exceptional personalisation, open banking, and enhanced security.