Analysts from the Singapore Research team at RHB Group Research have kept “neutral” on Singapore Exchange (SGX) with an unchanged target price of $11.10.
The report, on Sept 13, comes after the exchange announced that it would allow companies to seek listings on the SGX-ST via Special Purpose Acquisition Companies (SPACs) as long as the criteria are met.
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To recap, SGX is the first major Asian exchange to introduce the listing framework.
The move is done in a bid to attract more technology companies to the exchange.
That said, the team is keeping its “neutral” call as the impact on SGX’s earnings is “difficult to assess currently” following the announcement.
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It has also kept its earnings estimates unchanged for the time being.
It acknowledges, however, that it welcomes SGX’s latest initiative and effort “in trying to capture the latest listing trend”.
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According to reports, SGX is in talks with Grab and Sea Limited for potential listings on the exchange.
Shares in SGX closed 19 cents lower or 1.86% down at $10.04 on Sept 13, with an FY2021 P/B of 7.1 times and dividend yield of 3.1%.
