A Singaporean initiative to boost the initial public offering (IPO) market with a fast-track route to a Nasdaq dual listing has garnered warm response from potential issuers, though bankers caution thin liquidity and a high valuation requirement could limit take-up.
The initiative, announced on Nov 19, will let companies list simultaneously on the Singapore Exchange and Nasdaq using a single prospectus in their application, cutting the cost and complexity of a second listing that firms pursue primarily to access capital from a broader investor base.
Described by Nasdaq as “the first of its kind”, the plan is set to go live by mid-2026.
It follows tax rebates and other measures over the past year from a city-state striving to woo mainly South-East Asian companies while also courting global issuers in an effort to catch up with regional rival Hong Kong.
Those measures are starting to have an impact as IPOs in Singapore raised about US$2.15bil in 2025, the most since 2017.
Still, that compared with US$37.2bil in Hong Kong’s best performance since 2021, LSEG data showed.
Having watched on as Hong Kong experienced an artificial intelligence-fuelled IPO boom over the past two years, Singapore is banking on Nasdaq’s cachet to help it regain ground and cement its role as a regional hub for growth companies seeking global capital.
Welcoming the tie-up was Singapore-based Carro, backed by state investor Temasek and Japanese tech investor SoftBank Group. The auto marketplace aims for a US IPO with a valuation at over US$3bil, Reuters had reported.
“Our hesitation for a dual listing has always been complexity and the need to deal with two regulators during an IPO,” co-founder and chief executive officer (CEO) Aaron Tan said.
Malaysia-based used-car trading platform Carsome described the initiative as “constructive”. “A structure that streamlines cross-border listings will naturally prompt companies to reassess the options available to them,” said co-founder and CEO Eric Cheng.
Singapore-based Funding Societies, a regional digital financing platform for small businesses, said the tie-up could offer South-East Asian startups a means of listing in the United States, which might otherwise be out of reach.
The CEO of Singapore-based Hummingbird Bioscience, Piers Ingram, said the initiative was “a bridge” opening the way to science-focused investors in the United States as well as Asia.
All four companies declined to elaborate on any IPO plans. Nasdaq vice-chairman Bob McCooey said the Global Listing Board “will create meaningful value for the region and facilitate a global marketplace”. — Reuters
Yantoultra Ngui, Xinghui Kok and Jun Yuan Yong write for Reuters. The views expressed here are the writers’ own.
