SGX

SGX: Facing a delay in dual listings and IPO due to mkt conditions. Fitness First has postponed its US$500m IPO scheduled in 4Q this year to nxt year due to mkt sentiment. Fitness First had already met with cornerstone investors in both HK and Sg. Other notable companies which have reportedly delayed their listing plans include Manchester United (worth US$1b) and Fortis Healthcare India (worth US$400m)

BW Offshore has also delayed a secondary listing indefinitely. It was initially targeting 1H2011 and delayed it once to 2H2011 but prospects looks dismal now. Its CEO has stated that there has been a lack of liquidity for dual listings in Sg as well as current mkt conditions which contributed to its decision. BW Offshore has currently no urgent need for capital but has not ruled out listing in Sg at a later date. Since an agreement with Oslo Bors and SGX to facilitate dual listings 2 yrs ago, only 1 company Golden Ocean has been carried out.

In other news, London Stock Exchange and SGX have held talks for a joint bid for London Metal Exchange (LME) which could be worth GBP1.0b. LME has a market share of approx 80% of global trade in metal futures and is the target for a buyout with at least 10 interested parties approaching the exchange. The tie-up might lend more clout and credence that could smooth over issues which scuttled SGX’s first deal with ASX. Some of LME’s shareholders are financial institutions, Goldman Sachs, UBS, JP Morgan and MF Global.