SGX Value Unlock Programme Draws 30+ Listed Companies
30-40 SGX-listed firms seek support to fix market mispricing through better IR strategy. Singapore's S$5B equity programme targets undervalued companies.
Around 30 to 40 companies listed on Singapore Exchange (SGX) have made early inquiries into the newly launched Value Unlock programme, which aims to address market mispricing through improved corporate strategy and investor communication. The initiative was introduced alongside the Monetary Authority of Singapore's S$5 billion (~US$3.7 billion) Equity Market Development Programme.
The programme opened two grant schemes for applications on Friday. The Equip and Elevate schemes offer tailored support for companies at various growth stages.
Addressing Market Mispricing Through Better Communication
Market participants point to weak disclosure and poor investor engagement as key drivers of mispricing on the exchange. These gaps in communication often leave companies undervalued, even when they have strong fundamentals.
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Chan Kum Kong, SGX's head of capital market development, described the programme as a movement to sharpen boardroom focus on shareholder value. He emphasized that the initiative requires collective effort to foster value creation mindsets that lead to better investor communication and higher valuations.
The programme addresses what Chan called the challenge of "lifting supply" for obscure companies with poor communication that become mispriced when not properly discovered by investors. The construction sector was highlighted as particularly positioned to benefit, with strong structural tailwinds but historically limited focus on shareholder value. As funding needs increase for these companies, improving valuations will become crucial.
Learning from Regional Success Stories
Chan referenced successful precedents in South Korea's 2024 Corporate Value Up Programme and Tokyo Stock Exchange's 2023 reforms, both of which saw indices rise following implementation. Singapore's programme has already shown positive market response with upward trending indices.
A key challenge identified is SGX's dominance of old economy companies, which appear less attractive compared to growth sectors like artificial intelligence on exchanges such as Nasdaq. However, panelists noted these companies can unlock value through capital recycling and dividend payments, signaling growth capacity.
Building Ecosystem Support for Listed Companies
The initiative emphasizes collaboration across the ecosystem, including brokerage communities and research analysts who can generate reports to share with fund managers. This collaborative approach aims to improve visibility for smaller companies that often struggle to attract analyst coverage.
Nine asset managers, including Amova Asset Management and JP Morgan Asset Management, have been selected to receive EQDP funding. New funds are launching to strengthen Singapore's equity market focus on small and mid cap companies, providing additional capital and attention to companies participating in the Value Unlock programme.
The programme represents a strategic push to elevate disclosure standards and investor relations practices across Singapore's listed company landscape, with early adoption signals suggesting appetite for change among corporate boards.
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