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Information on IPO in Singapore. PROFILE OF SINGAPORE EXCHANGE LISTING REQUIREMENTS. A Pan-Asian Market Number of Listings. As at end Sep 2000. Foreign Enterprises Share of Capitalisation. As at end Sep 2000. Sectoral Classification of Companies listed on SGX.

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slide2
PROFILE OF SINGAPORE EXCHANGE
  • LISTING REQUIREMENTS
slide3

A Pan-Asian Market

Number of Listings

As at end Sep 2000

sectoral classification of companies listed on sgx
Sectoral Classification of Companies listed on SGX

The manufacturing sector includes the electronics sector

year 2000 foreign listings
Philippines

Ionics

PRC

Cytech Software

Malaysia

Nucleus

PK Tech

New Zealand

- Brierley

Australia

Easycall

Hong Kong

Kingboard

I-Comm Technology

Kyosha

Lafe Technology

Giant Wireless

North 22

FDS

Jadason

United States

Reed Group

Year 2000 Foreign Listings
funds raised by companies listed in 2000
Funds Raised By Companies listed in 2000

Funds Raised (S$)

Number of companies

market capitalisation of companies listed in 2000
Market Capitalisation of Companies listed in 2000

Market Cap (S$)

Number of companies

turnover velocity
Turnover Velocity

Dollar Turnover/Market Cap

Source: Federation Internationale Des Bourses De Valeurs

ease efficiency of trading
Ease & Efficiency of Trading
  • Overseas investors can trade SGX listed shares through the Internet
  • Announcements by listed companies are available real time on the SGX website
  • A T+3 settlement period for trades done
measures to attract global participation
MEASURESTO ATTRACTGLOBAL PARTICIPATION
  • Establishment of an electronic link with Australian Stock Exchange to cross trade SGX and Australian listed stocks
  • Joint Venture with Amex to trade Amex listed exchange traded funds on SGX
  • MOU with NSE and IISL to trade futures contracts based on S&P CNX Nifty Index
measures to attract global participation1
MEASURESTO ATTRACTGLOBAL PARTICIPATION
  • July 2000 :

- Opened the membership for new clearing members to perform trading & clearing services

- Allow dual membership of both securities & derivatives markets

  • October 2000: Brokerage rates are now freely negotiable
accounting standards
Accounting Standards
  • Singapore Statement of Accounting Standards
  • International Accounting Standards
  • US GAAP
domicile base of operations
Domicile & Base of Operations
  • Free choice of domicile of listed company
    • Eg. Bermuda … [Non exhaustive]
  • No need for operations in Singapore
  • Two independent directors, one resident in Singapore
choice of currency
Choice of Currency
  • Free choice of trading currency.
  • Some of the more popular choices among foreign companies:
    • S$
    • US$
    • HK$ .. (non-exhaustive)
  • Choice of functional and/or reporting currency:
    • S$
    • US$
    • Rupee .. (non-exhaustive)
investor confidence
Investor Confidence
  • International standard of disclosure and corporate governance
  • Well regulated financial intermediaries
  • Sound financial system
resilience index asian economies vulnerability to a us slowing
Resilience Index‘Asian economies’ vulnerability to a US slowing

Source: SocGen Securities Research (May 2000)

availability of funds
Availability of Funds
  • Strong presence of foreign & local fund managers

(664 fund managers & 249 investment analysts)

  • Total funds managed (End of 1999) =S$246.2 billion
  • Venture Capital Funds (1999)

Raised = $1.4 billion

Managed = $10.2 billion

slide23
PROFILE OF SINGAPORE EXCHANGE
  • LISTING REQUIREMENTS
slide25

Moratorium (Lock-up)

  • Vendor share sales allowed at IPO

Promoters:

- Controlling shareholders and their associates

- Executive directors who own 5% or more upon listing

why list overseas
Why list overseas?
  • Need global currency for overseas expansions or acquisitions
  • Allows foreigners to invest in your shares
  • Ability to grant employee share options to employees abroad
  • Attract funds from Non-Resident Indians
  • Raise profile of company abroad
cost of listing on sgx
Cost of Listing on SGX
  • Initial Listings Fees: maximum of US$11,700
  • Annual Listing Fees: maximum of US$1,170
  • Generally Total Cost of Listing = 5% of proceeds raised
stock exchange profile
Stock Exchange Profile

Singapore Exchange offers…

  • A Pan-Asian market
  • Well regulated, stable and transparent
  • Access to liquidity & capital
  • Accessible market & flexible rules
  • Low issuance cost
rule advantages
Rule Advantages..
  • Comprehensive listing criteria
  • Flexible rules
  • Equal treatment with local companies
  • Choice of listing currency
sgx then nasdaq nasdaq then sgx
SGX Then NASDAQ/NASDAQ Then SGX
  • List on SGX to raise capital to build out business model in Asia
  • Enable foreign investors to invest in your shares round the clock
  • Access investors both in US and Asia in two steps to enhance fund raising
simultaneous sgx nasdaq
Simultaneous SGX & NASDAQ
  • Business model sufficiently developed for US market
  • Obtain US valuation, access liquidity both in US and Asia
  • Avoid becoming orphan stock on NASDAQ
  • Lower listing cost- one prospectus for both
  • => Access investors simultaneously in US and Asia to enhance liquidity, valuation and minimise listing cost
slide35

CSM Volume Traded on NASDAQ vs SGX

(adjusted for the difference in number of shares offered in the 2 markets)

Total invitation: 250 mil shares

US & International offering : 225 mil shares

Singapore offering : 25 mil shares (10% of total invitation)

slide36

ST Assembly Volume Traded on NASDAQ vs SGX

(adjusted for the difference in number of shares offered in the 2 markets)

Total invitation size : 170 mil shares

US & international offering : 153 mil shares

Singapore offering : 17 mil shares (10% of total invitation)

thank you

Thank You

SGX website: www.sgx.com

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