What an IPO is, how companies list on the SGX, how to apply for shares, and what to weigh before you do.
An initial public offering, or IPO, is the first time a private company sells its shares to the public. After a few quiet years, new listings on the Singapore Exchange (SGX) have picked up again through 2025 and 2026, so IPOs are back in the conversation for everyday investors. This guide explains, in plain English, what an IPO is, how the process works on the SGX, how to apply for shares, the pros and cons, and what recent listings can teach you. If you are still getting to grips with how Singapore’s equity market works, start there, then come back here for the IPO-specific detail.
This article is for information and education only. It is not financial advice.
What Is an IPO?
A company that wants to raise money and widen its pool of owners can “go public” by listing its shares on a stock exchange. The IPO is that first sale of shares to outside investors. Before the IPO, the company is private, and its shares are held by founders, staff and early backers. After the IPO, anyone with a brokerage account can buy and sell the shares on the open market.
Companies pursue an IPO for a few reasons: to raise capital for growth, to let early investors cash out some of their stake, to give the business a public profile, and to create shares that can be used for future fundraising or staff rewards. For investors, an IPO is a chance to buy into a company at the moment it joins the market, sometimes before it is widely covered.
It helps to separate two markets. The primary market is the IPO itself, where you buy shares directly from the company at a set offer price. The secondary market is normal day-to-day trading on the exchange, where you buy from and sell to other investors at the prevailing price. Once an IPO lists, trading moves entirely to the secondary market.
Key IPO terms, in plain English
- Prospectus: the official document setting out the company’s business, financials, risks and the offer details. It is lodged with the regulator and free to read.
- Offer price (or issue price): the fixed price at which IPO shares are sold before listing.
- Public offer tranche: the portion of shares set aside for retail investors, usually applied for through a bank.
- Placement tranche: the portion allocated to institutions and selected investors through the deal’s banks.
- Balloting: the lottery-style process used to decide who gets shares when demand exceeds supply.
- CDP account: a Central Depository account that holds your Singapore shares in your own name.
- Board lot: the standard trading unit on the SGX, usually 100 shares.
How an IPO Works on the SGX
An SGX listing follows a set path. The company appoints an issue manager (an investment bank) and files its application with the exchange. SGX reviews the business and raises queries. The prospectus is then lodged publicly, on MAS OPERA for a Mainboard listing or SGX Catalodge for a Catalist listing, and the public can read it during an exposure period of roughly two weeks.
Next, the offer opens. Shares are split between the placement tranche and the smaller public offer tranche, and applications usually run for about a week. If the public offer is oversubscribed, shares are allotted by balloting. Successful applicants have their shares credited to their CDP account, and any money for unsuccessful applications is refunded. On listing day, the shares begin trading on the open market and the price moves freely from there.
Singapore has two listing boards, and the one a company chooses tells you something about its size and stage.
Mainboard vs Catalist
| Feature | Mainboard | Catalist |
|---|---|---|
| Typical issuer | Larger, established companies and REITs | Smaller, faster-growing companies |
| Entry requirements | Must meet one of three quantitative tests (see below) | No minimum quantitative test |
| Route to list | Direct SGX admission | Brought to market and supervised by an approved sponsor |
To list on the Mainboard, a company must meet one of three financial tests: a pre-tax profit of at least 30 million Singapore dollars in the latest financial year; or be profitable in the latest year with a market value of at least 150 million dollars; or have operating revenue and a market value of at least 300 million dollars (the route most REITs and larger issuers use). Figures are per the SGX Mainboard Rules, as of October 2026.
Catalist has no minimum profit or market-value test. Instead, an approved full sponsor must judge the company suitable and bring it to list, then keep supervising it. That makes Catalist the usual home for younger growth companies. Several listings pair a REIT structure with the Mainboard, so it is worth understanding the way real estate investment trusts are structured before you apply for one.
How to Apply for an IPO in Singapore
Applying for the retail (public offer) tranche is straightforward once your accounts are set up. Here is the process from start to finish.
- Open a CDP account. You need an individual CDP securities account linked to a bank account to receive public-offer shares in your own name. Joint accounts cannot be used for electronic IPO applications. If you prefer, some brokers let you apply through a custodian account instead.
- Read the prospectus. It is free on MAS OPERA or from the issuer. Check the business, how the money raised will be used, the financials and the risk factors before you commit.
- Apply through your bank. Use the Electronic Securities Application (ESA) service via your bank’s mobile app, internet banking, or an ATM. The major banks (DBS and POSB, OCBC, UOB) all offer this. Applications usually start at a minimum of 1,000 units and then rise in multiples of 100. A small non-refundable service charge applies for each application, around 2 dollars at the major banks, whether or not you are allotted shares.
- You can use CPF or SRS funds for eligible IPOs, applied through the relevant CPF Investment Account or Supplementary Retirement Scheme account.
- Wait for the ballot. If the offer is oversubscribed, shares are balloted. Allotted shares are credited to your CDP account before listing day, and any unsuccessful amount is refunded.
Once the shares list, they trade like any other counter, and the same steps apply as when you buy shares once a stock is trading on the open market.
Placement vs public offer
Most IPO shares often go to the placement tranche, which is allocated by the deal’s banks to institutions and selected investors. The public offer tranche that retail investors apply for through an ATM or app is usually the smaller slice. That is why a popular IPO can be heavily balloted, and why your allotment may be smaller than you asked for, or nothing at all.
Pros and Cons of IPO Investing
IPOs can be rewarding, but they are not a one-way bet. Weigh both sides before you apply.
| Pros | Cons |
|---|---|
| A chance to buy into a company as it joins the market | Allotment is not guaranteed; popular offers are balloted |
| Some IPOs rise on their first trading day | Some IPOs fall below the offer price on day one |
| Simple to apply through your bank | Limited public track record to analyse |
| Access to new sectors and business models | Hype and lock-up expiries can swing the early price |
The honest summary: an IPO is just one way to own a stock, and a new listing carries more uncertainty than an established company with years of public results. A common approach is to treat IPOs as a small, satellite part of a portfolio rather than its core, and to keep the bulk of your money diversified. Spreading risk across a basket of index funds is one way investors balance the concentrated bet that a single IPO represents.
Recent Singapore IPO Examples, 2025 to 2026
The revival in SGX listings has been helped by policy support. In February 2025, the Monetary Authority of Singapore (MAS) launched the Equity Market Development Programme, an initial 5 billion Singapore dollar commitment (since increased) to channel investment into Singapore-listed shares, as part of a wider push by the Equities Market Review Group to deepen the market.
Recent listings show how varied IPO outcomes can be. The table below captures the offer details, which are fixed and dated. Prices move after listing, so always check the current quote before acting.
| Company (ticker) | Board / type | Listed | Offer price | Notes (as of October 2026) |
|---|---|---|---|---|
| Info-Tech Systems (ITS) | Mainboard, company | 4 Jul 2025 | S$0.87 | The first SGX Mainboard listing in about two years |
| NTT DC REIT (NTDU) | Mainboard, REIT | Jul 2025 | US$1.00 | The largest SGX REIT IPO in about a decade; a flat-to-soft debut |
| Lum Chang Creations (LCC) | Catalist, company | 21 Jul 2025 | S$0.25 | Public tranche about 47 times oversubscribed; a strong debut |
The contrast is the lesson. Lum Chang Creations jumped well above its offer price in its first days, while NTT DC REIT, despite being the headline deal, traded around or below its offer price after listing. A big, well-known IPO is not automatically a profitable one, and a small Catalist name is not automatically a poor one.
Where IPOs Fit in a Portfolio
IPOs are exciting, but they work best as an occasional, considered addition rather than a strategy on their own. The uncertainty around a brand-new listing, thin trading history, lock-up expiries and the chance of a weak debut, means a single IPO should rarely be a large share of your money.
For most people, the sensible core is a diversified, long-term holding, with IPOs as a small satellite position when a specific company genuinely interests you. If you want exposure to a sector that has produced several recent listings without picking a single new name, a hands-off portfolio of Singapore REITs is one example of a diversified alternative. Decide in advance how much of your portfolio you are willing to put into any one IPO, and stick to it.
Frequently Asked Questions
An IPO is the first time a private company sells its shares to the public and lists them on a stock exchange. After the IPO, anyone can buy and sell those shares on the open market.
Open a CDP account linked to your bank, read the prospectus, then apply for the public offer through your bank’s mobile app, internet banking or an ATM using the Electronic Securities Application service.
For the public offer tranche in your own name, yes, you need an individual CDP account. Some brokers let you apply through a custodian account instead, where the broker holds the shares for you.
Yes, for eligible IPOs, using your CPF Investment Account or your Supplementary Retirement Scheme account, subject to the usual rules of each scheme.
The placement tranche is allocated by the deal’s banks to institutions and selected investors. The public offer tranche is the portion retail investors apply for through an ATM or app, and it is usually the smaller slice.
It depends on the company and the price, and outcomes vary widely. IPOs carry more uncertainty than established listed companies, so many investors treat them as a small part of a diversified portfolio rather than a core holding.
Applications usually start at 1,000 units and then rise in multiples of 100. The cost depends on the offer price, plus a small non-refundable application fee of around 2 dollars at the major banks.
Read More
- The Singapore stock market explained
- What is a REIT
- How to buy stocks in Singapore
- How to build your first $100K
Disclaimer
This article is for informational and educational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any investment product. It does not take account of your personal circumstances or objectives. Figures are accurate as of the dates stated and may change. Investing carries risk, including the possible loss of principal, and the value of investments can go down as well as up. Consider seeking advice from a licensed financial adviser before making any decision. This advertisement has not been reviewed by the Monetary Authority of Singapore.
