SGX to implement new rules in bid to boost reputation of main board

Singapore Exchange (SGX) has announced plans to introduce stricter rules for admission to its main board as it seeks to draw in more IPO listings from larger companies.

A corporation that wants to list must meet one of three new criteria, which will come into force in August this year.

The first option requires companies to have an operating track record of a minimum of three years, a profitable prior financial year, and an IPO value of at least S$150 mn ($119 mn).

The second option says companies with one financial year of operating revenue must have an IPO valued at a minimum of S$300 mn.

The final option requires a three-year operating track record and a minimum pre-tax profit for the previous financial year of S$300 mn.

All companies must also have a minimum price per share of S$0.50. The new criteria have been brought in to attract listings from larger companies, and in doing so boost the exchange’s profile.

‘Enhanced admission standards will increase Singapore’s attractiveness for companies and investors, further strengthening its position as an international financial centre,’ says Magnus Bocker, CEO of SGX, in a company statement.

The current rules allow companies to list with a minimum pre-tax yearly income of just S$10 mn.

If a company is unable to adhere to the new listing rules, they can request to list on SGX’s secondary board Catalyst.