MAS seeks feedback on measures to make it easier for companies to list on SGX

Companies seeking to list on the Singapore Exchange (SGX) may soon find the process more streamlined.

The Monetary Authority of Singapore (MAS) has proposed to consolidate all listing review functions under the Singapore Exchange Regulation (SGX RegCo) so firms do not need to engage with more than one entity to list.

SGX RegCo is the regulatory arm of SGX.

The move comes at a time when the number of initial public offerings (IPOs) in Singapore has rebounded after dwindling for years.

It comes after SGX RegCo on Oct 29 announced new measures to make it easier for some companies to list, including lowering the profit test threshold for new listings from $30 million to $10 million.

This will enable pre-revenue companies with strong growth potential in emerging industries to go public on SGX.

All these are part of a set of recommendations made by the Equities Market Review Group, which was set up in August 2024 to revitalise the Singapore market.

The proposal aims to help Singapore adopt a regulatory approach that is pro-enterprise, alongside concurrent measures to strengthen investor confidence, MAS said.

Under the proposal, companies that want to list only need to engage with SGX RegCo.

Currently, companies exploring IPOs and other ways to list on SGX have to engage with MAS to review their prospectus, and with SGX RegCo on their suitability to list.

“The consolidation of listing review functions under SGX RegCo will provide prospective issuers with greater certainty on the listing process and timeline,” MAS said.

If MAS’ proposal is accepted, a company will submit its prospectus to SGX RegCo instead of MAS.

SGX RegCo will then review it, accept the lodgement of, and register the prospectus on MAS’ behalf.

MAS added that SGX RegCo will continue to focus on admitting quality issuers and ensuring they disclose relevant and material information to support informed decision-making.

MAS will work with SGX RegCo to ensure timely and robust market surveillance and enforcement, as well as investigate and take action against breaches of prospectus disclosure requirements.

MAS will continue in its role as the statutory regulator in relation to the prospectus disclosure requirements according to the Securities and Futures Act.

It will also have the power to determine regulatory requirements and grant exemptions.

“Swift and robust enforcement action against false and misleading disclosures or corporate malfeasance is important to maintain investor confidence,” the consultation papers said.

“To this end, MAS and SGX RegCo will continue to conduct close surveillance, along with strong collaboration and timely sharing of information.”

This consolidation complements other efforts to streamline the listing process and also comes alongside measures that aim to strengthen investor confidence, MAS said.

These include moves to enhance investor recourse avenues and to support companies in unlocking shareholder value.

MAS is inviting interested parties to submit comments on the proposals by Nov 29.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

MAS: Consultation paper on consolidation of listing suitability and prospectus review functions

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