Singapore to help tech start-up IPOs

The Grant for Equity Market Singapore (GEMS) program will have three components: a listing grant to help defray the costs of companies seeking to list on the Singapore Exchange (SGX) and two programs to improve local equity research. According to a filing, GEMS is set to launch in February and has been given a budget of S$75 million ($55.5 million).

Companies in new technology sectors with a minimum market capitalization of S$300 million are the biggest beneficiaries of the listing grant, which will co-fund 70% of their eligible listing expenses up to S$1 million. Enterprises in high-growth sectors, with the same minimum market cap, may receive 20% of their eligible listing expenses, up to S$500,000. In addition, companies from all sectors with no minimum market cap may receive 20% of their listing expenses up to S$200,000.

The equity research grants will support the salaries of local equity research analysts, with MAS co-funding 70% of the salaries for fresh graduates hired as analysts and 50% of the salaries for re-employed experienced analysts. MAS will also contribute capital to initiatives aimed at improving Singapore’s equity research ecosystem, such as publication of industry and sector primers and innovative research distribution methods.

Singapore’s government has pursued a number of initiatives to encourage listings by technology start-ups, which have tended to look to Australia or the US as a listing venue rather than Singapore. GEMS follows a partnership between SGX and Infocomm Media Development Authority (IMDA), Singapore’s technology and media regulator, to recruit financial investors for pre-IPO funding rounds in start-ups and to help companies prepare for their listings.

SGX has also taken steps to alleviate the burden of listing requirements for start-ups. The exchange 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.

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• Topics
• Southeast Asia
• Technology
• IPO
• Singapore