LISTING IN SINGAPORE The Singapore equity market provides an important avenue for Singapore and foreign companies
to raise long-term capital The Singapore Advantage Singapore’s financial market has been built on a robust and competent legal and judicial framework.
In 2006, the Political Entrepreneurs and investors favour Singapore as a choice destination for its pro-business environment,
established infrastructure,
Benefits and Drawbacks of Listing
Drawbacks Listing Criteria General Requirements (i) The company must be a going concern. Foreign companies seeking listing will need to: SGX Main Board and SGX SESDAQ Requirements Companies considering listing in Singapore may choose to list on either the SGX Main Board or SGX
SESDAQ. For listing on the SGX Main Board, companies must satisfy one of the following criteria:
SGX SESDAQ was established to enable sound local and foreign companies which are not able to meet the criteria for listing on the Main Board but still wish to enjoy the benefits of listing to obtain listing. There are no quantitative requirements for listing on SGX SESDAQ.
Following listing on SGX SESDAQ, companies may apply to be transferred to the Main Board if they satisfy its criteria in the future. At the time of publication, SGX has proposed to develop a New Board to replace the SGX SESDAQ.
The New Board will be Methods of Listing A company may seek either a primary listing or secondary listing, where the company is already listed on
another stock exchange. Shareholding Spread SGX has set minimum public float requirements for the amount of post-invitation share capital, based
on market capitalisation.
Pricing of the Shares The issue price is largely dependent on the company’s present and future earnings. It is therefore
important to prepare a two-year For companies without historical records of positive earnings, it is still possible for them to obtain a
listing. The issue price may be Listing Preparation When considering a listing, a company should ascertain its reasons for such an exercise, and be aware
that the preparation and process
Timeline to IPO ![]() Professional Help to Pave the Way The key professionals that an IPO aspirant will require include: 1. The Issue Manager The listing process kicks off with the appointment of an issue manager, who will assume the position as the company’s sponsor. The issue manager is usually a member of SGX, a merchant bank or similar institutions acceptable to SGX. The issue manager has an active role in priming the company for listing. In addition to managing the IPO, the issue manager also submits the listing application on behalf of the company, and coordinates with SGX on all matters arising from the listing application.
Costs Involved in a Listing Exercise
Post-listing
Sources: IE Singapore and RSM Chio Lim, 2007. |