* Over 12 S-chips expected to dual-list this year
* Taiwan exchange sees 20 TDR listings in 2011 vs 12 in 2010
* Double-digit PE overseas vs single-digit in Singapore
(Repeats story published late on Thursday)
By Eveline Danubrata
SINGAPORE, Feb 17 (Reuters) – Singapore is slowly losing its
lustre as a capital-raising venue for Chinese companies.
Over a dozen Chinese firms trading on the Singapore Exchange
are expected to seek dual listings in Taiwan, Hong
Kong and Seoul in 2011, exceeding last year’s total, drawn by
higher valuations and aggressive marketing efforts by rival
bourses.
“We should see around 13-15 companies this year because
markets are getting hotter and Singapore investors are still not
showing lots of signs that good companies are being
appreciated,” said Roger Tan, head of research at SIAS Research.
“After a year of seeing successes and failures, companies
are now more knowledgeable about dual listings. The good ones
will definitely have more confidence to list and the not so good
ones will put in more effort to get there,” Tan added.
Last year, around 10 Singapore-listed Chinese companies,
known in the city-state’s market as S-chips, ventured into
Taiwan and Hong Kong. South Korea is also increasingly becoming
a dual listing destination.
Yangzijiang Shipbuilding , one of China’s largest
shipyards, raised some T$4.8 billion ($151 million) from issuing
Taiwan Depository Receipts (TDRs) in September last year as
trade links between China and Taiwan expanded.
Depository receipts allow investors to buy shares of foreign
companies in their own markets.
Analysts said the trend could become worrying for the
Singapore Exchange, which has launched a $7.9 billion bid for
ASX , if these companies also begin to delist from the
bourse. So far, however, companies are only seeking dual
listings and very few have delisted.
SINGAPORE DISCOUNT
Chinese companies, mainly small ones, pursue primary
listings in Singapore because they are being edged out by larger
mainland firms in the Hong Kong and Shanghai IPO markets.