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Rising Trend of Delistings

Over the past several years, the Singapore Exchange (SGX) has experienced a notable increase in the number of companies choosing to delist and go private. This trend has significant implications for investors, market dynamics, and the broader investment landscape in Singapore.

In 2024, a total of 20 companies delisted from the SGX, while only four new companies went public during the same period. This pattern indicates a net reduction in the number of listed entities on the exchange.  As of May 2025, the trend continues, with at least 14 companies having announced plans to delist, and four firms already completing the process within the year.

Reasons Behind the Delisting Wave

Several factors contribute to this increasing number of delistings:

  • Undervaluation: Many companies perceive that their stock prices do not reflect their intrinsic value, leading them to consider privatization as a means to unlock value.
  • Low Liquidity: Thin trading volumes can result in stock price volatility and make it challenging for investors to enter or exit positions efficiently.
  • Regulatory and Compliance Costs: The obligations associated with maintaining a public listing, including compliance with regulatory requirements and reporting standards, can be burdensome, especially for smaller firms.
  • Strategic Repositioning: Some companies opt to delist to restructure, pursue long-term strategies without the pressure of quarterly reporting, or prepare for listings on other exchanges.

Impact on the SGX and Investors

The increasing number of delistings has led to a decline in the total number of companies listed on the SGX. As of October 2024, the number of listed companies had fallen to 617, marking the lowest count since September 2004.  

This reduction in listed entities can impact market diversity and limit investment opportunities for both institutional and retail investors. It also raises concerns about the attractiveness of the SGX as a platform for capital raising and public investment.

Looking Ahead

The trend of companies delisting from the SGX underscores the need for ongoing evaluation of the exchange’s policies and the broader market environment. Efforts to enhance market liquidity, reduce compliance burdens, and ensure fair valuations are essential to retain and attract listings.

For investors, staying informed about these market dynamics is crucial. Understanding the factors driving delistings can aid in making informed investment decisions and anticipating shifts in the market landscape.

Note: The information provided is based on data available up to May 2025. For the most current statistics and developments, please refer to official SGX publications and announcements.