This year, new stocks have risen by more than 140%, and the market outlook continues to be optimistic | Lianhe Zaobao

The performance of newly listed stocks in initial public offerings (IPOs) this year has far surpassed that of recent years, with MetaOptics standing out particularly. As of November 10 (the same date hereafter), its stock price has risen over 140% to HKD 0.485, up HKD 0.285 from the offering price of HKD 0.20. With the trend of declining interest rates and measures to boost the Singapore stock market, stock brokers and analysts are generally optimistic about the market outlook, although the doubling of stock prices in the short term may be limited to smaller market capitalization stocks with strong market demand.

The stock prices of MetaOptics and Lum Chang Creations reached as high as 275% and 158% above their offering prices, hitting HKD 0.75 and HKD 0.64, respectively. However, the best-performing stock on the first trading day was actually Dezign Format, which surged 40% on its debut, while the two most recent IPOs saw their stock prices dive on their first day.

Veteran stockbroker Feng Shijun recently stated in an interview with Lianhe Zaobao that the recent activity in Singapore's IPO market is not coincidental but the result of multiple factors working together. Among them, the gradual decline of high interest rates is a key factor, which is favorable for growth companies seeking to go public and investors willing to take on higher risks.

Additionally, after a prolonged period of sluggishness and lack of investor interest, the IPO market is poised for a rebound, and the potential demand for new investment opportunities is gradually being released. Due to the limited number of quality new stocks, market attention is relatively concentrated, making it easier for these newly listed companies to attract investor attention.

Global Easing Monetary Policy Boosts Confidence

Chen Guangzhi, head of the research department at KGI Securities Singapore, stated in an interview that major global central banks have been implementing easing monetary policies, such as lowering key interest rates. As a result, market liquidity is gradually increasing, boosting investor sentiment.

OANDA senior market analyst Wang Suqin believes that the activity in Singapore's IPO market is primarily due to a series of recent reforms and incentive measures aimed at promoting IPO activities. These reforms and measures include adjustments to listing rules and tax incentives, as well as the SGD 5 billion Securities Market Development Plan (EQDP) launched by the Monetary Authority of Singapore to enhance local stock market liquidity.

He added that despite ongoing uncertainties regarding U.S. trade tariff policies, the Straits Times Index in Singapore has shown resilience this year, rising over 15% year-to-date and reaching a historical high, which has driven a positive feedback loop in the IPO market.

Moreover, the external environment also provides support, such as the trend of interest rate cuts by the Federal Reserve, which is expected to continue at least until the first half of 2026, further reinforcing bullish market sentiment FSMOne's research analyst Chen Qiuyi believes that the impressive performance of new stocks this year is mainly driven by a "dual push" of improved market sentiment and structural support for small and mid-cap stocks. The Monetary Authority of Singapore's securities market development plan aims to enhance the liquidity of local small and mid-cap listed companies and encourage retail and institutional investors to participate more actively, which helps create concentrated demand for new stocks in related sectors.

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Regarding the phenomenon of new stocks having price increases of over 100% since their listing this year, Chen Guangzhi said, "Due to the scarcity of tech stocks in the Singapore market, investors are more inclined towards technology-themed stocks."

Wang Suqin believes that the strong performance of MetaOptics is mainly due to its innovation and high growth potential. Recent news about the company's operational strategies and downstream business expansion has further boosted market confidence.

Chen Qiuyi stated that investors are actively pursuing MetaOptics and Lum Chang because both companies have very attractive business stories and recent growth catalysts.

As for whether the heat in the initial public offering market can be sustained, Chen Guangzhi believes, "As long as the loose monetary policy and fiscal policy continue, global investment sentiment will remain optimistic."

Wang Suqin also believes, "As long as macro factors are favorable, the strong performance of Singapore's IPO market may continue. A weaker dollar and the Federal Reserve's interest rate cycle will indirectly lower Singapore Treasury bill (T-bill) rates, leading to reduced demand for T-bills, and more capital will seek higher returns or yields in the Singapore stock market."

Experts: IPO heat may be sustainable in the short term

Chen Qiuyi said, "In the short term, the strong performance of small and mid-cap companies in initial public offerings may continue, thanks to structural liquidity plans and the growing participation of investors in Singapore's mid-cap stocks However, regarding the performance of stock prices, she pointed out that not all initial public offerings (IPOs) have limited liquidity or attractive growth stories. For larger or more liquid IPOs, it is usually difficult for stock prices to achieve more than a 100% increase.

She said, 'Overall, some new stocks are still expected to achieve considerable gains on their first trading day, but instances of stock prices doubling often only occur in smaller market capitalization stocks with strong market demand.'