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Listing on the Singapore Exchange

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Presentation on theme: "Listing on the Singapore Exchange"— Presentation transcript:

1 Listing on the Singapore Exchange
27 May 2008 Tel Aviv, Israel Singapore Exchange

2 Agenda Overview Of Singapore Exchange
SGX’s Securities Market Platforms Catalist - Our Latest Offering

3 Overview Of Singapore Exchange
We undertook a study since last year to review the competitiveness of our securities markets. The objective was to grow quality listings on Mainboard and SESDAQ.

4 Market Performance …. strong long term growth
Annual Trading Volume (bn units) Straits Times Index (STI)

5 An International Exchange
…. sizeable segment of foreign companies No. of Listed Companies – 760 Market Capitalisation - US$508 bn US$172 bn 293 467 US$336 bn Note: Figures above exclude 18 foreign companies which are secondary listed with secondary trading on SGX and 9 GDRs updated as at end-April 2008

6 Established Market …. spans across the whole spectrum of industries
Note: Figures above exclude 18 foreign companies which are secondary listed with inactive trading and 9 GDRs on SGX as at end-April 2008

7 Diversity of Foreign Companies
… wide range of industries Breakdown by Number Breakdown by Market Capitalisation Note: Figures above exclude 18 foreign companies which are secondary listed with secondary trading on SGX and 9 GDRs updated as at end-April 2008

8 Diversity of Foreign Companies
… different geographical regions Country of Origin Note: Figures above exclude 18 foreign companies which are secondary listed with inactive trading and 9 GDRs on SGX as at end-April 2008

9 Sarin Technology Listed on SGX Mainboard on 8 April 2005 Issue Manager
United Overseas Bank Recent Announcement Record quarterly revenues of US$10.6M in Q1,2008 & acquisition of Galatea 179 66 42 Sarin Technology Ltd is involved in the development, manufacture and sale of precision technology products that use three-dimensional geometric measurement (metrology) for the processing of diamonds and gems. 14.4m 0.1m

10 Some of Our Foreign Listings
…. ranges from mid to large size Company Origin Sector Market Cap (US$ bn) Jardine (6 companies) Hong Kong Conglomerate 46.5 Wilmar Malaysia Palm Oil 21.6 Cosco Corporation PRC Shipping 5.2 Thai Beverage Thailand Food & Beverage 5.1 Noble Group Hong Kong Trading 4.4 Yanlord PRC Property 3.1 Total Access Communications Thailand Telecommunications 2.6 PT Berlian Laju Tankers Indonesia Shipping 1.0 TPV Technology Taiwan Electronics 1.0

11 Growth of Our Foreign Listings
…. outpacing growth of domestic listings ** * Foreign companies are well-received by investors here Note: * Includes 3 Reverse Takeovers ** Includes 4 Reverse Takeovers, but excludes 7 GDRs ***Includes 3 Reverse Takeover but exclude 2 GDR

12 Liquidity of Foreign Companies
…. well-monitored by investors Note: Statistical information updated as at end April 2008

13 IPO Funds Raised …. growing significantly US$ mn 5,701* 5,310 3,915
2,148 2,000 1,093 1,074 627 256 Notes: * Includes funds raised by Reverse Takeovers Statistical information updated as at end April 2008

14 Active Secondary Fund Raising
…. continual funding for growth Note: Statistical information updated as at end April 2008

15 Diversified Product Range
…. to suit each funding and investment need Equities / Equity options Global Depository Receipts Real Estate Investment Trusts (REITs) Business Trusts Investment Funds / Exchange Traded Funds (ETFs) Bonds /Debentures

16 Post-IPO Support …. extending beyond the initial listing stage
Facilitate regular interaction with analysts Monthly sessions Profile to institutional investors Overseas roadshows (eg. Japan, Europe, U.S.A.) Investor Relations Professionals Association Singapore (IRPAS) Promotes IR best practices in Singapore with over 160 members Ensure research coverage Pioneering an exchange-subsidized research scheme Each listed company covered by 2 research firms Downloadable research reports on SGX’s website (50,000 average monthly downloads by 35,000 users)

17 SGX’s Securities Market Platforms
We undertook a study since last year to review the competitiveness of our securities markets. The objective was to grow quality listings on Mainboard and SESDAQ.

18 SGX’s Securities Market Platforms
MAINBOARD CATALIST Exchange-regulated & supervised Exchange-regulated, Sponsor-supervised Regulatory Approach Target Companies Established Companies Fast-Growing Companies IPO Review & Post-IPO Supervision Exchange Sponsors Established branding Access to a wider range of institutional investors More product types Faster time to market Easier corporate actions Key Benefits

19 Mainboard Listing Requirements
…. 3 alternative routes Alternative 1 Alternative 2 Alternative 3 Pre-Tax Profit S$7.5M over 3 yrs; At least S$1M each yr S$10M in 1 or 2 yrs Nil Market Cap Nil S$80M Public Float Companies with market cap <S$300M – 25% public float Companies with market cap >S$300M – 12-25% public float At least 1000 shareholders Others - Accounting Standards: US GAAP / IFRS / Singapore-FRS - Choice of reporting currency – USD, HKD etc - Choice of domicile - Independent directors

20 Catalist - Our Latest Offering
We undertook a study since last year to review the competitiveness of our securities markets. The objective was to grow quality listings on Mainboard and SESDAQ.

21 Catalist - Transformed From SESDAQ
1. Supervision of companies to be undertaken by approved Sponsors. 2. SGX does not directly supervise companies, but retains power to discipline & ultimate accountability. 3. Sponsors are accountable: Regulation by Exchange Market reputation at stake Commercial obligations to issuers Legal/professional liabilities (SFA/R)

22 Full Sponsors (in alphabetical order)

23 Key Advantage: Shorter Listing Process
Catalist process ≈ 5 – 6 weeks months 2 weeks 2 weeks 1 – 2 weeks Preparation to apply Notification to SGX Public Exposure on Catalist Website Lodgment & Launch Trading Commences Mainboard process ≈ 12 – 18 weeks months 8 – 12 weeks 3 weeks 1 – 2 weeks Trading Commences Preparation to apply SGX Review Public Exposure on MAS Website Registration & Launch

24 Key Advantage: Easier Corporate Actions
Catalist MAINBOARD Annual Mandate to Issue New Shares Non pro-rata: 20% Pro-rata: 50% Non pro-rata: 50% to 100%* Pro-rata: 100% Shareholder Approval for Acquisitions & Disposals Thresholds at 20% of various criteria Acquisition threshold at 75% or fundamental change in business Disposal threshold at 50% or fundamental change in business Note: Criteria are based on net asset value; net profits attributable; aggregate value compared with market cap; no. of equity securities issued. * 50% limit by ordinary resolution; 100% limit by special resolution

25 Companies’ Admission Requirements
Sponsor to assess suitability to list No quantitative entry criteria set by SGX – Sponsors will use their own in-house deal selection criteria Offer Document with 12-month working cap statement No review by SGX Same disclosure/liability as prospectus Lodged on Catalodge website Restrictions to secure commitment of promoters* & pre-IPO investors 2 Independent Directors 1 resident for foreign companies Shareholding spread of 15%, 200 shareholders This is a summary only, details of the requirements are in the rules. *“Promoters” are controlling shareholders & their associates and executive directors with 5% of share cap at time of listing. If they hold more than 50% at IPO, they may sell but must retain 50%. If they hold less than 50% at IPO, they may not sell any. After IPO, promoter and pre-IPO investors are subject to moratorium periods.

26 Companies’ Continuing Requirements
Continual sponsorship at all times* No review of circulars by SGX Higher mandate for new issuance Higher thresholds for major transactions Corporate governance guidelines (comply or explain) Disclosure of material information Half-yearly/quarterly reporting Interested Persons Transactions Shareholder spread of 10% This is a summary only, details of the requirements are in the rules. * Full Sponsor that brings an IPO to market must continually sponsor the company for at least 3 years after IPO.

27 Transfers Between Boards
Apply for transfer Meet entry criteria (profit) Be listed for 2 years Meet spread & shareholder requirement With offer: OIS (on OPERA) Without offer: Shareholder circular Undergo review by SGX Shareholder approval (special reso) MAIN BOARD Exchange-Supervised Sponsor- Supervised Apply for transfer Must not be a Mainboard watchlist company Find Sponsor (decides suitability) Meet spread & shareholder requiremt Shareholder approval (special reso) No offer at point of transfer

28 Exchange Fees MAINBOARD Catalist Initial Fee Minimum S$50,000 S$30,000
Maximum S$200,000 S$100,000 Variable Rate* S$100 / mil Annual Fee S$25,000 S$15,000 S$25 / mil Note: Other listings expenses include professional fees for Sponsors, lawyers and auditors. For more information, please consult a Sponsor. * Fees are based on market cap of the listed company. For example:- For company with market cap of S$100M, initial fees = S$30,000 For company with market cap of S$500M, initial fees = S$50,000

29 For more information, please visit www. sgx. com & www. sgxcatalist
For more information, please visit & Contact: Tel: Melissa Tan (T: ) Lily Chia (T: ) Thank You We undertook a study since last year to review the competitiveness of our securities markets. The objective was to grow quality listings on Mainboard and SESDAQ. While care has been taken to ensure the accuracy of the information in this document, SGX and its affiliates make no warranty as to the accuracy, completeness, merchantability or fitness for any purpose, of the information contained in this document or as to the results obtained by any person from the use of any information or investment product mentioned in this document. SGX reserves the right to make changes to such information from time to time. Any change, omission or error in such information, shall not form the basis for any claim, demand or cause of action against SGX or any of its affiliates and SGX and its affiliates expressly disclaim liability for the same.


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