Singapore’s IPO scene is heating up: what it could mean for your financial planning

After a few relatively quiet years, 2025 has brought about a resurgence of initial public offerings (IPOs) in Singapore.

According to Bloomberg, firms listing on the Singapore Exchange (SGX) have raised about US$1.44 billion in IPO funds this year, placing Singapore among the world’s top 10 IPO venues for the first time in years.

And the momentum is set to continue. In August, the SGX revealed that more than 30 companies are already in the pipeline, having hired advisers and begun preparatory listing work.

For everyday Singaporeans, this IPO revival could open up new ways to grow wealth. However, it also calls for realistic expectations and sound financial planning to make the most of these opportunities.

Here’s a look at what is driving the growth and what it could mean for your financial plans.

A revival years in the making

The recent resurgence in Singapore’s IPO market is no coincidence. A mix of regulatory reforms, government incentives, and strong market fundamentals has made the SGX far more attractive to companies seeking to go public.

The Monetary Authority of Singapore (MAS) and SGX RegCo have simplified listing requirements and reduced compliance costs to encourage more local and regional firms to list. At the same time, new tax incentives have helped companies lower their IPO expenses.

Perhaps most significantly, the Government has committed S$5 billion under the Equity Market Development Programme (EMDP), an initiative aimed at boosting liquidity and strengthening Singapore’s equity ecosystem.

Adding to this momentum, some companies have deliberately chosen Singapore to avoid the volatility and political risks affecting other markets. The city-state’s reputation for clean governance, strong legal frameworks, and investor protection has once again become a competitive advantage, especially as global investors increasingly seek stability and predictability.

What it means for your financial planning, whether you invest directly or not

Much of the current IPO activity is being driven by sectors aligned with long-term global trends such as sustainability, data infrastructure, logistics, healthcare, and income-generating real estate.

For individual investors and policyholders, a vibrant capital market supports financial well-being in several ways, even if you never invest in an IPO directly.

1. More pathways to grow wealth

A stronger local market expands the investment universe for Singaporeans. It brings more listed companies, dividend-paying REITs, and professionally managed funds that can complement traditional savings and insurance plans. Over time, this broadens your wealth accumulation options and strengthens your foundation for retirement, education, or legacy goals.

2. Greater economic resilience

When capital markets thrive, businesses gain easier access to funding. This supports job creation, innovation, and sustainable economic growth, all of which benefit individuals indirectly through more stable employment and stronger domestic demand. Sound financial planning grows best in a healthy, resilient economy.

3. Diversification opportunities

A balanced portfolio combines protection, liquidity, and growth. With more companies listing locally across technology, sustainability, healthcare, and real estate, investors can diversify within Singapore instead of relying solely on foreign markets. This helps reduce exposure to currency swings or geopolitical shocks.

4. The role of passive and professional management

The rise in listings also expands the range of underlying assets available for local unit trusts, exchange-traded funds (ETFs), and investment-linked policies (ILPs). For individuals who prefer professional management rather than direct stock-picking, this means more options for diversified, guided investment.

5. A more inclusive investment landscape

Retail participation in Singapore’s markets is gradually returning. With easier access through local brokerages and CPF Investment Scheme (CPFIS)-eligible funds, smaller investors can now take part in the market through structured, risk-managed channels.

This inclusivity fosters a culture of financial literacy and ownership, where wealth building becomes part of everyday financial planning rather than an exclusive pursuit. Even for those who prefer not to trade directly, the benefits filter through. Investment-linked plans, endowment policies, and retirement portfolios often hold Singapore-listed assets. As more local companies go public, these underlying investments can become both more diverse and resilient.

The caveats: what investors should be aware of

A hot IPO market does not mean a risk-free one.

Valuations can become inflated when enthusiasm peaks, and some companies may lack proven earnings or sustainable business models. Smaller listings can also remain thinly traded after debut.

Moreover, delistings, where companies exit the exchange due to privatisation or poor liquidity, remain a structural challenge. Retail investors should recognise that IPO investing carries short-term volatility, and early trading days can be unpredictable.

Market analysts also caution that many upcoming listings are small- or mid-cap in size. While these may offer higher growth potential, they also tend to be less liquid and more sensitive to economic shocks. Investors with shorter horizons or lower risk tolerance should exercise caution, especially as interest rate changes and global sentiment can quickly affect demand for new issues.

The connection between protection and growth

Whether you invest through equities, REITs, or managed funds, every investment strategy should be anchored in a strong financial foundation.

Before allocating money to higher-risk assets like IPOs or growth stocks, ensure you have:

• Adequate protection coverage, including health and life insurance, to safeguard long-term goals.
• Emergency savings that can cover at least six months of expenses.
• A clear investment horizon, aligned with your retirement age, education funding, or legacy planning objectives.

Once these pillars are in place, exposure to equity markets can play a valuable role in long-term wealth accumulation.

Looking ahead: a market that mirrors your long-term goals

Singapore’s renewed IPO momentum signals more than just a rebound. It reflects renewed confidence from regulators, investors, and businesses in the city-state’s financial ecosystem.

For individuals, it is a timely reminder that long-term wealth accumulation depends on balance:

• Protection through insurance
• Growth through diversified investments
• Stability through disciplined planning

Markets will always move in cycles, but the principles of good financial planning remain constant. As Singapore strengthens its position as a regional capital market hub, it is worth revisiting your financial plan to ensure you are protected today and well-positioned for tomorrow’s opportunities.