Singapore plans pre-IPO fund to attract listings

The Growth IPO Fund will back start-ups that are two or more funding rounds away from a public listing, with Series B or later identified as the typical sweet spot. The goal is to bridge the funding gap between the bulk of growth-stage investments in Singapore and later-stage rounds. EDBI is the investment arm of the Singapore Economic Development Board.

Government agencies have launched various initiatives over the years to support financing within the start-up ecosystem, moving from seed through later stages. More recently, several Southeast Asia-based venture capital firms have raised growth funds that allow them to participate in Series C and D rounds. Previously, these deals relied on participation from global investors.

Last month, Openspace Ventures reached a first close of $120 million on OSV+, its debut growth vehicle, which has an overall target of $200 million. Earlier in the year, Asia Partners closed a $384 million fund designed to fill what it estimates to be an approximately $1.1 billion annual growth-stage funding gap in Southeast Asia.

The Growth IPO Fund is one of several partnerships formed by the Singapore Exchange (SGX) to guide companies through to the public markets, according to a statement.

Alongside the EDBI initiative, Temasek Holdings and the Singapore government announced plans for a co-investment fund that will anchor IPOs. The vehicle – known as Anchor Fund @ 65 – will be managed by Temasek-owned 65 Equity Partners and have a first tranche of S$1.5 billion.

The Monetary Authority of Singapore (MAS) has also enhanced its grants scheme, which supports companies pursuing local listings by co-funding IPO and hiring expenses. The scheme was unveiled in 2019 with a budget of S$75 million. No further detail was given as to how it is being enhanced.

Earlier this month, Singapore issued final guidelines for IPOs by special purpose acquisition companies (SPACs). Boon-Chye Loh, chairman of SGX, has said he expects the first listing application in a couple of weeks.

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• Topics
• Southeast Asia
• IPO
• Expansion
• Technology
• Fundraising
• Growth
• Singapore
• EDBI
• Temasek Holdings
• Monetary Authority of Singapore (MAS)
• Singapore Exchange