Two companies have announced changes that could impact their status on the Singapore Exchange (SGX) amid efforts to enhance market activity.

Singapore Paincare, a medical services provider, has received a privatization offer from Advance Bridge Healthcare at 16 cents per share. This values the company at about SG$27 million (US$19.98 million) and represents a 27% premium over its last traded price.

It also reflects a 77.8% increase from its share price in March 2024 when the potential deal was first disclosed. If the offer is successful, Singapore Paincare will be delisted from SGX’s Catalist board.

The company said in its filing that it does not require access to equity capital markets and anticipates cost savings from delisting.

Separately, Fuxing China Group, a Chinese manufacturer listed on SGX’s mainboard since 2007, has received approval to list on the Nasdaq.

In a filing on May 23, the company indicated that trading of its American depositary shares would begin soon. However, it has not confirmed whether it will retain its SGX listing.

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🔗 Source: The Straits Times

🧠 Food for thought

1️⃣ Tighter minority shareholder protections have reshaped delisting dynamics

Singapore’s voluntary delisting rules underwent significant changes in 2019, requiring exit offers to be both “reasonable and fair” rather than just “reasonable” as previously required 1.

These reforms removed the 10% blocking vote threshold that once allowed small groups of shareholders to obstruct delistings, replacing it with a requirement that 75% of independent shareholders must approve the delisting 1.

The rule changes were a direct response to concerns about minority shareholders receiving exit offers significantly below perceived fair value—sometimes 40% below—especially in companies with high insider ownership percentages 2.

This regulatory evolution helps explain why current privatization offers, like Singapore Paincare’s 27% premium over its last traded price, appear more generous than historical patterns, reflecting the market’s adaptation to enhanced shareholder protections.

Companies now face a higher bar when pursuing privatization, balancing their stated desire to reduce compliance costs against the requirement to provide more equitable compensation to minority investors.

2️⃣ Geopolitical tensions are reshaping Asia’s IPO landscape

The interest from Chinese companies in Singapore listings represents a strategic recalibration in response to U.S.-China trade tensions, with companies seeking to reduce their dependence on Western capital markets 3.

Singapore’s appeal extends beyond geopolitical neutrality to include specific financial incentives, such as a reported 20% tax rebate for primary listings that directly reduces operational costs 4.

Companies from consumer-facing sectors are particularly interested in SGX listings, seeing Singapore as both a capital-raising venue and a strategic entry point to Southeast Asian markets 5.

Despite this increased interest, Singapore faces significant challenges in competing with larger exchanges, as evidenced by its total of 613 listed companies as of April 2025—actually fewer than the 623 companies listed a year earlier.

3️⃣ The diverging fate of public REITs versus operating companies on SGX

While operating companies are increasingly pursuing privatization, Singapore has solidified its position as the third-largest global venue for REIT listings by fundraising over the past five years, behind only China and India.

This divergence highlights how different corporate structures face distinct market pressures, with REITs benefiting from Singapore’s strong regulatory framework, tax transparency, and investor familiarity with the asset class.

The continued interest in REIT listings, including Japan’s Nippon Telegraph and Telephone’s planned data center REIT and Centurion’s exploration of a workers and student accommodation REIT, stands in stark contrast to the privatization trend among operating companies.

Singapore’s success with REITs demonstrates that specialized investment vehicles can thrive even as traditional operating companies find less value in maintaining public listings, suggesting a potential specialization strategy for the exchange.

For investors, this bifurcation presents both challenges and opportunities—while privatizations may offer short-term premium returns, the expanding REIT sector provides new investment avenues in an otherwise contracting market.

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