All You Need To Know About Initial Public Offering Or IPO (Part 5 of 5)
( Continued… )
IPO Part 5 of 5 : Singapore MainBoard & Catalist listing requirement
SGX Mainboard Listing Rules
The two main changes are found in Rule 210(2) & 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
1. The Singapore Exchange Limited (the “SGX”) launched “Catalist”, its sponsor-supervised listing platform for fast growing local & international companies on 26 November 2007.
2. Catalist is the transformed SESDAQ (Stock Exchange of Singapore Dealing & Automated Quotation system), SGX’s then 2nd board.
3. The transformation was a bold move taken by SGX following an extensive study of other market models, & a public consultation in May 2007.
4. The rules for Catalist, announced on 27 November 2007, took effect on 17 December 2007. On the same day, SESDAQ was renamed Catalist.
Key Features Of Catalist
The sponsor
1. A company that wishes to list on Catalist must appoint a sponsor and, once listed, must be sponsored at all times.
2. The sponsors are required to keep in close contact with their issuers and be available to advise on all listing and corporate governance issues.
3. On the admission of a new issuer, the sponsor has to conduct due diligence on the issuer, & determine and declare to the SGX, the suitability of the issuer to list.
4. Post-listing, the issuer must retain a sponsor at all times or face delisting. The sponsor bringing the issuer to list must sponsor the issuer for at least 3 years post-listing.
5. If the sponsor intends to end the sponsorship within 3 years of the issue’s listing, it must obtain the SGX’s approval.
6. The sponsor is expected to “whistle-blow” to the SGX & ultimately terminate the sponsorship of an errant issuer.
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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