Singapore Exchange to lower barriers for tech IPOs

The partnership will focus on companies identified by the Accreditation@IMDA (A@IMDA) program, which curates and supports high-growth, innovative technology companies in Singapore. SGX and IMDA will recruit financial investors to support start-ups via pre-IPO funding rounds and in preparation for listing. They will also update A@IMDA’s incubation process to focus more on IPO planning with assistance from law and audit firms.

“There are immense opportunities in the coming years for Singapore-based ICM [Infocomm Media] companies as economies in the region transform and digitalize,” said IMDA CEO Tan Kiat How in a statement. “The partnership between SGX and IMDA is an important step in deepening the collaboration between the technology and financial ecosystems, and enables both groups to benefit from this rapid growth.”

Southeast Asian technology start-ups have tended to look to Australia or the US as a listing venue rather than Singapore. The listing requirements for SGX’s main board have been cited as a factor, as well as the greater visibility and liquidity that can be achieved by listing in other markets.

The Catalist board, launched in 2008, and its predecessor SASDAQ were both intended to alleviate the burden of listing requirements for start-ups. Unlike on the main board, which requires three years of financial records, one year of profitability and a market capitalization of S$150 million ($112 million), a company can list on Catalist as long as it is accepted by one of SGX’s approved sponsors.

SGX also recently instituted an alternative framework for the main board, under which a company can list as long as it has a minimum market cap of S$300 million, an amount considered well within the scope of successful tech companies.

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• Topics
• Southeast Asia
• Technology
• IPO
• Singapore