Whether to fund growth, pare debt or just to stock up on cash for a rainy day, companies are increasingly hustling to refill their war chests through share placements and rights issues. At least 20 firms have gone ahead and completed their raise or are in the process of doing so. Proceeds from secondary fundraising for August alone came to $610 million, the highest since November last year.
Underlying this wave is the long-overdue awakening of the Singapore stock market following years of slumber. The local bourse’s average daily trading value rose 27% y-o-y to a four-year high of $1.3 billion for the 12 months ended June 30. The pace of growth was the fastest among Southeast Asian markets. The average daily trading value has since gone up further to $1.47 billion in July and $1.6 billion last month.
The main catalyst behind this reinvigoration is the Singapore central bank’s so-called Equity Market Development Programme, which has so far released $1.1 billion to Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management to invest in small- and mid-caps. Many of these lower liners have outperformed the Straits Times Index’s 12.7% gain for the first eight months of 2025.
Growing expectations that the US Fed will finally cut interest rates soon have also given local stocks a boost, making fundraising more compelling. Lower interest rates typically support stock valuations and investor risk appetite as they reduce the opportunity cost of holding cash.
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Investors therefore see share placements and rights issues as better bets for more attractive returns. On their part, companies get to raise more equity with less dilution when valuations are elevated.
The largest secondary fundraising exercises so far this year have come from companies in the property sector. REITs, in particular, have raised more than $1.5 billion, of which CapitaLand Integrated Commercial Trust (CICT) accounted for the lion’s share.
CICT pulled in $600 million last month from a private placement that was 4.9 times subscribed. This included an additional $100 million raised via an upsize option. Following close behind were CapitaLand Ascendas REIT, which raised $500 million in May, and Frasers Centrepoint Trust (FCT), which convinced investors to part with $421 million in April.
See also: Singapore’s stock market paradox: A tale of two markets
Another sizeable raise in recent months was by Cosco Shipping International (Singapore). The shipping group and vessel builder garnered $273 million in July through a 1:1 rights issue.
A slew of smaller companies have also been tapping investors for funds. They include Clearbridge Health, Elite UK REIT, Ever Glory United Holdings, ISOTeam, JB Foods, KSH Holdings, Mermaid Maritime, Prospera Global, Salt Investments, Sanli Environmental, Sinostar PEC Holdings, Sunpower Group, TOTM Technologies, The Trendlines Group, Tritech Group and Vividthree Holdings.
While some raised only modest amounts, all of these exercises reveal how pervasive the drive to shore up capital has become.
Echoes of past fundraising waves
The current spate of cash calls is not unprecedented. Over the last two years, as global interest rates began to ease, a number of Singapore REITs sought funding from investors to buy properties that had been out of reach when borrowing costs were higher and deals were stalled by the pandemic. Over $2.8 billion was raised by REITs last year, up from $1.8 billion in 2023.
The global financial crisis of 2008-2009 presents an even more striking precedent. As part of efforts to support the US economy, the Fed slashed interest rates from more than 5% to near-zero in just over a year to encourage companies and consumers to spend.
With the global economy still on its knees then, a number of Singapore blue chips and Temasek-linked companies rushed out rights issues to fortify their balance sheets. DBS Group Holdings, CapitaLand, City Developments and Neptune Orient Lines were among those that collectively sought more than $10 billion from shareholders in 2009.
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Seen as defensive at the time, those moves ultimately positioned the companies to benefit from the turnaround. History shows that acting early, rather than waiting until capital markets tighten, is often rewarded. This helps explain why companies on SGX are once again front-loading their equity needs.
That said, the current macro backdrop is far from benign. Exports worldwide are softening, purchasing manager indices hover near contraction, and the latest forecasts by several international agencies point to weaker global growth in 2026. Recent civil unrest in several Asian nations, including Bangladesh, Nepal and Indonesia, is further clouding the outlook for this part of the world.
These developments strengthen the case for companies to act sooner rather than later to top up their coffers and pursue accretive deals.
Defensive or opportunistic?
Not all cash calls serve the same purpose. Some, like Cosco’s $273 million rights issue or Clearbridge Health’s $2 million placement of new shares, are primarily defensive, aimed at bolstering working capital or paring debt. Others are opportunistic. CapitaLand’s REITs, for example, are funding acquisitions to boost future distributions.
The current wave of fundraising is unlikely to fade soon. For one, Yangzijiang Maritime Development, which is being spun off by Yangzijiang Financial Holding and is slated to make its trading debut in November, has already unveiled plans to raise up to $400 million through a placement of new shares and a rights issue.
More REITs may follow in the footsteps of CapitaLand and FCT if acquisition opportunities arise. If strong volatility returns to stock markets, some companies may even choose pre-emptive rights issues over waiting for sentiment to improve.
This spate of cash calls signals more than short-term opportunism. They reflect a recalibration of corporate strategy amid shifting global dynamics. Companies seem to be using this moment not only to secure funding but also to reshape portfolios, shore up competitive advantages, and position for possible dislocations ahead.
For investors, the takeaway is equally clear: selectivity matters. Beyond headline amounts or marquee names, the true measure of a deal lies in whether management has a coherent plan for the proceeds and the discipline to execute it. Identifying those with credible growth paths will be key to turning this fundraising wave into meaningful long-term gains.
