IPO Listing Rules in Singapore to be Eased to Attract More Companies
Singapore has proposed changes to simplify its initial public offering (IPO) listing process in an effort to attract high-growth firms and revive its struggling stock market.
Key features to look out for in this proposal include eliminating the need for third-party verification of profit forecasts. This move will lead to earlier engagement with retail investors, easing disclosure requirements on competing businesses linked to company directors or major shareholders. The Monetary Authority of Singapore (MAS) is seeking public feedback on reforms aimed at boosting market activity.
Enhancing the Local Equity Market
The government will be leading the review, which will launch in August. The review will enhance the local equities market. Earlier this year, incentives were introduced, including a 20% tax rebate for new primary listings, a 10% rebate for secondary listings, and a S$5 billion investment initiative for local stocks.
The Singapore Exchange (SGX) currently hosts 613 companies, which is the lowest number it has recorded in the last 20 years. Last year, it saw just five new listings raising a total of S$19.7 million. The Singapore government has recognised the problem, and it is now making moves to rectify that.
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