IPO – All You Need To Know About Mainboard and Catalist Listing Rules In Singapore
IPO can be an Exit Strategy for you in your current business or it can be a Strategy in next phase of expansion.
Build your company to be IPO-able should be something you should aim for in your current journey of entrepreneurship.
SGX Mainboard Listing Rules
The two main changes are found in Rule 210(2) and Rule 241 of the Mainboard Listing Rules.
Rule 210(2) deals with the quantitative listing admission criteria.
With effect from 10 August 2012, a listing applicant will be required to satisfy one of the following quantitative requirements:
(a) Have a minimum consolidated pre-tax profit of min S$30 million for the latest financial year, and an operating track record of at least 3 years;
(b) Be profitable in the latest financial year, have an operating track record of at least 3 years, & have a market capitalisation at initial public offering (“IPO”) of >S$150 million; or
(c) Have generated operating revenue in the latest completed financial year, & have a market capitalisation at IPO of > S$300 million.
Rule 241 relates to the minimum issue price for equity securities offered for subscription or sale, for which a listing is sought.
Under the amended Rule 241, the minimum issue price for such equity securities were increased to S$0.50 each ( previously S$0.20 each )
Catalist
The Singapore Exchange Limited (the “SGX”) launched “Catalist”, its sponsor-supervised listing platform for fast growing local & international companies on 26 November 2007.
Catalist listing requirement : “No track record requirement “
1. The SGX will no longer determine the suitability of listing.
2. An issuer will be listed on Catalist based on the sponsor’s assessment of suitability.
3. However, the SGX will retain the right to delay or refuse admission, a right it may exercise only in exceptional circumstances.
4. As a result, the SGX will not prescribe on the issuer’s track record.
5. Instead, directors & the sponsor will have to state in the offering document that the issuer’s available working capital is sufficient for its present purposes and for 12 months from listing.
Hope above IPO sharing helps and aspires some of the business owners here in planning ahead for your business expansion or exit later.
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