Singapore courts equity listings with package including $1.1 billion fund By Reuters

© Reuters. FILE PHOTO: Youth fish at a largely empty Merlion Park in Singapore August 31, 2021. REUTERS/Edgar Su/File Photo

By Anshuman Daga

SINGAPORE (Reuters) – Singapore moved to attract high-growth local and overseas companies to raise capital on Singapore Exchange (OTC:) and broaden the city-state’s appeal as a financing hub on Friday with a package of funding and incentivising measures.

Singapore’s ministry of trade and industry said the government and state investor Temasek will set up a co-investment fund to invest in late-stage private funding and IPOs of high-growth firms, to anchor their listings in Singapore.

“We have heard repeatedly that one area where Singapore can do better is in making our public equity market more conducive for innovative growth companies,” Gan Kim Yong, minister for trade and industry, said during an event at SGX broadcast virtually.

“As more of our start-ups mature into regional and global companies, having a vibrant home equity market becomes more pertinent,” he said.

The moves come after SGX earlier this month unveiled new rules allowing listings of special purpose acquisition companies, marking the first Asian bourse to do since the now-waning U.S. SPAC frenzy began last year.

With a small base of retail investors in a city of 5.7 million people, SGX has struggled to capture big regional initial public offerings (IPOs). It has also seen a wave of delistings, although it remains a global fundraising venue for real estate investment trusts.

With a first tranche of S$1.5 billion ($1.1 billion) of capital, the new fund will be managed on a commercial basis by 65 Equity Partners, a new fully-owned Temasek investment platform.

EDBI, the investment arm of the Singapore Economic Development Board, will also establish a new ‘Growth IPO Fund’ to invest in later-stage companies, typically at two or more funding rounds away from a public listing. Currently, EDBI makes early-stage investments.

Starting with a fund size of up to S$500 million, EDBI will partner with companies to grow their operations in Singapore, with a view towards a listing on SGX.

Friday’s proposals were jointly announced by the trade and industry ministry, EDBI, Temasek, the Monetary Authority of Singapore and SGX.

The Monetary Authority of Singapore, its central bank and integrated financial regulator, said it will enhance its grants that support equity listings in the financial hub.($1 = 1.3454 Singapore dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button