Singapore Exchange (SGX) will begin listing Singapore Depository Receipts (SDRs) for Grab, Sea, and SpaceX, marking the first time US-listed companies are available through this instrument on the local bourse. According to SGX, the expansion allows retail investors to gain exposure to these global firms in Singapore dollars, bypassing the complexities of overseas currency conversion and direct international trading.
Expanding Access to US-Listed Equities via SDRs
The introduction of Grab, Sea, and SpaceX SDRs brings the total number of such instruments on the SGX to 38. Previously, the exchange facilitated trading for companies across Thailand, Hong Kong, and Indonesia. By offering these shares in local currency, SGX aims to lower the barrier to entry for retail participants interested in the digital economy, e-commerce, and aerospace sectors.
Bernice Tan, SGX Group’s vice-president of securities market and depository, stated that the move minimizes traditional pain points like foreign exchange friction. Investors can now manage these international positions within a familiar trading environment, which the exchange expects will encourage broader portfolio diversification.
Did you know?
Retail investors currently hold more than 80 percent of total SDR holdings on the SGX, reflecting a strong shift toward local retail participation in international assets.
Market Momentum and Investor Participation
SGX reported that average daily turnover for SDRs has more than trebled year-on-year. This growth is underpinned by a significant increase in total assets under management, which rose 153 percent to cross S$280 million.
Luke Lim, managing director of PhillipCapital, noted that the inclusion of these specific firms provides a blend of regional relevance and high-growth potential. “The new SDRs offer a unique mix of household names that are highly relevant to our regional economy, alongside pioneers in high-growth sectors,” Lim said. For local investors, this means easier access to companies like Grab and Sea, which are already central to the regional digital economy.
Strategic Advantages for Portfolio Diversification
The core benefit of the SDR structure is the elimination of cross-border trading complexities. Because these receipts trade in Singapore dollars during local market hours, investors do not need to convert their capital into US dollars or account for the varying market hours of the New York Stock Exchange or Nasdaq.
Frequently Asked Questions
What are Singapore Depository Receipts (SDRs)?
SDRs are financial instruments that allow investors to hold shares of foreign companies listed on overseas exchanges without needing to trade directly on those foreign bourses.
Can I trade these shares in US dollars?
No. A primary feature of SDRs on the SGX is that they are traded and settled in Singapore dollars, which removes the need for currency exchange when buying or selling.
Which new companies are included in the latest expansion?
The latest additions to the SGX SDR lineup are Grab, Sea, and SpaceX.
Who is the primary audience for SDRs?
The product is designed for retail investors looking to build globally diversified portfolios within a familiar, local trading environment.
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