Seeking Secondary Listing on the Singapore Exchange (SGX)
A secondary listing on the Singapore Exchange (SGX) allows a company that's already listed on another exchange (home exchange) to be traded on the SGX as well. This offers various benefits like:
Raising capital: The company can tap into a new pool of investors in Singapore and Southeast Asia.
Increased liquidity: Shares become more tradable due to the wider market access.
Higher profile: The company gains greater visibility and brand recognition in the region.
Here's a breakdown of the process:
Eligibility:
Your company must already be listed (or concurrently listed) on a recognized stock exchange.
Depending on your home exchange, you may need to meet specific requirements set by the SGX.
Specific Requirements Set by the SGX
The specific requirements set by the SGX for a secondary listing depend on your company's home exchange. However, here's a general guideline for companies from developed markets seeking a secondary listing on the SGX Mainboard:
Financial Requirements:
Market capitalization: Not less than S$300 million (based on the latest financial year).
Operating Revenue: Meet a minimum threshold for operating revenue (actual or pro forma) in the latest completed financial year.
Shareholding Spread:
The SGX requires a minimum level of public shareholding to ensure liquidity. You may need to demonstrate compliance with these requirements or take steps to achieve them before listing.
Other Requirements:
Financial Reporting: Your company's financial statements must comply with Singapore Financial Reporting Standards (SFRS(I)), International Financial Reporting Standards (IFRS), or US Generally Accepted Accounting Principles (US GAAP). Reconciliation may be required if following different standards.
Board Composition: At least two Singapore resident independent directors must be on the board.
Disclosure: A comprehensive prospectus needs to be prepared, disclosing all information a reasonable investor would need to make informed decisions.
Additional Considerations:
While not a strict requirement, the SGX maintains discretion over admitting companies. A strong track record and future prospects can be beneficial.
SGX may impose additional conditions or requirements specific to your company or industry.
Listing methods:
Secondary listing with a concurrent offering: Raise capital by issuing new shares on the SGX.
Listing by introduction: No new shares are issued, suitable if you already meet shareholding spread requirements of the SGX.
Continuing obligations:
The requirements for maintaining a secondary listing on the SGX depend on your home exchange.
Generally, companies from developed markets need to:
Release information simultaneously on both exchanges.
Inform SGX about new share issuances and delisting decisions from the home exchange.
Comply with additional SGX rules that may apply.
Resources:
While the specific financial thresholds for operating revenue aren't publicly available, legal resources can offer more details on the listing process and requirements. Here's one such resource:
To learn more about the listing process, refer to the Singapore Exchange website: https://www.sgx.com/securities/how-get-listed
How Bestar can Help
Seeking Secondary Listing on the Singapore Exchange (SGX)
Bestar can be immensely helpful in navigating the process of a secondary listing on the Singapore Exchange (SGX) for several reasons:
Expertise in SGX Regulations:
The SGX listing process can be complex, with various requirements and ongoing obligations. Bestar will have a deep understanding of these regulations and can guide you through each step, ensuring compliance.
Advising on Listing Method:
There are two main methods for secondary listings: with a concurrent offering (raising capital) or by introduction (no new shares issued). Bestar can analyze your company's goals and financial situation to recommend the most suitable approach.
Meeting Financial Requirements:
The SGX has specific financial requirements for secondary listings, including market capitalization and minimum operating revenue. Bestar can help you assess if your company meets these criteria and advise on strategies to achieve them if necessary.
Preparing Listing Documents:
A comprehensive prospectus is required for listing, outlining your company's financial health, future prospects, and other relevant details. Bestar can assist in preparing this document, ensuring it meets SGX's disclosure standards.
Liaising with SGX:
The listing process involves communication with the SGX. Bestar can handle this communication on your behalf, ensuring a smooth and efficient application process.
Negotiating Listing Terms:
While uncommon, the SGX may impose additional conditions or requirements. Bestar can leverage their experience to negotiate on your behalf and secure the most favorable terms for your listing.
Continuing Obligations:
Even after listing, companies have reporting and disclosure obligations. Bestar can help you understand these obligations and ensure your company remains compliant with SGX regulations.
Network and Connections:
Bestar has a network of contacts within the Singapore financial industry. We can leverage these connections to facilitate the listing process and connect you with potential investors.
Overall, Bestar can act as a valuable partner throughout your secondary listing journey, saving you time, resources, and ensuring a successful outcome.
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