With 590 awards under its belt, Changi Airport is obviously the pride of our nation. In this regard, recent market talks of a potential Changi Airport REIT certainly set the market on fire. It also comes at a time when Singapore government is pondering how to best fund the huge infrastructure spending in the coming years without straining our nation‘s budget.
If the proposed listing really does materialize, Changi Airport REIT would not only raise much needed funds to pay for the construction costs of Terminal 5 and Changi East Development, but also increases liquidity for SGX, which has seen a dearth of blockbuster IPOs in recent years.
For the local bourse, the lack of game-changing IPOs has almost reached borderline hysterical level. Thus, SGX CEO Loh Boon Chye is surely going to fight tooth and nail for the IPO of Changi Airport REIT. In recent years, Singapore has been losing its appeal in terms of IPO listings to Hong Kong, which has a formidable hinterland in China.
The problem for SGX is further exacerbated with the slew of privatization of large cap companies like SMRT, Keppel Land, Tiger Airways, OSIM and Neptune Orient Lines. In a couple of weeks, …