Even as MAS plans an SGX revival, privatisations still take place

EVEN with moves to revitalise the Singapore stock market and analysts hopeful that there could be as many as 10 listings on the bourse, the slew of privatisation offers seen in 2024 – and the couple that have been made this year – indicates a different story. 

The low trading volume of a company’s shares, a challenging business environment, as well as cost savings are some reasons cited by companies that want to go private. 

In 2024, 17 companies listed on the Singapore Exchange (SGX) were the subject of privatisation offers. And although the new year has only just begun, various companies have already been the subject of such offers.  

A mega-deal is Cuscaden Peak’s S$0.98-per-unit offer to take Paragon Real Estate Investment Trust (Reit) private by way of a trust scheme of arrangement. 

The offeror noted that Paragon Reit has one of the lowest free floats among its retail Singapore Reit (S-Reit) peers, and has historically experienced low trading liquidity.