LIFETIME MEMBERSHIP When former Minister of Trade and Industry Chan Chun Sing visited AEM last year, it was a harbinger of things to come for AEM share price (SGX: AWX). With Temasek Holdings now officially onboard as the biggest shareholder of AEM, the narrative for AEM share price (SGX: AWX) has changed. For a Singaporean company to make it internationally, we need a Singapore Inc approach. After all, AEM is a home-grown company. The next step forward should be a Nasdaq IPO to enhance AEM’s visibility.
The entry of Temasek Holdings, coupled with the presence of institutional investors like Morgan Stanley, Aberdeen Standard Investment (Asia) and Malaysia Employees Provident Fund, also means that the stars are finally aligned for AEM to IPO in Nasdaq. If so, AEM could be the first homegrown company to be dual-listed in SGX and Nasdaq in recent years, thereby turbocharging AEM share price (SGX: AWX) to high heavens. Non-executive Chairman Loke Wai San, who had rescued AEM from collapse in 2012, should know that the support from Temasek Holdings will be helpful in the IPO journey.
Temasek’s investment comes at a time when Temasek, MAS, EDB and SGX recently announced initiatives to help high growth technology companies raise funds through dual-listing in overseas exchanges and SPACs. Ironically, the move to assist homegrown tech companies came after a number of Singaporean companies like Grab and Razer chose to list in overseas markets. Against this backdrop, my view is that a dual-listing for AEM should be imminent within the next six months, providing plenty of fireworks for AEM share price (SGX: AWX).
Speculative rumours of a potential Nasdaq IPO had been ongoing for two years. The market rumours went into an overdrive in July 2020 when SGX and Nasdaq entered into an MOU for cooperation on oversight. While the AEM management has never announced that a dual-listing is on the cards, my vision is that a Nasdaq IPO should be the endgame for AEM share price (SGX: AWX).
Indeed, the Nasdaq IPO will be the perfect catalyst for AEM share price (SGX: AWX). While iFAST share price had rocketed almost ten-fold since 2020, AEM share price (SGX: AWX) had risen by only three-fold during the same period. Given that the Price/Earning (PE) ratio for iFAST share price is currently 96, it is not exaggerating to say that AEM share price (SGX: AWX) could smash $50 if the company is listed in Nasdaq.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter (holding 2000 AEM shares at $4.50), so my views on AEM share price (SGX: AWX) may be biased.
Catalyst for AEM share price (SGX: AWX)
With the investment from Temasek Holdings, AEM is inching towards a Nasdaq listing. With less than USD1 billion in market capitalization, a listing in Nasdaq could subject AEM to hostile takeovers or poor trading liquidity. Currently, the market capitalization for AEM is $1.28 billion. To reach USD1 billion cap ($1.35 billion), AEM share price must hit [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]LIFETIME MEMBERSHIP
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