IPO in Singapore - List companies on SGX stock exchange

Singapore skyline from the Esplanade
Singapore skyline from the Esplanade

Why list in Singapore?

Singapore is widely regarded as a premier financial centre in the world with established regulations and infrastructure. It has been a preferred choice for international investors due to its efficient government and political stability. 

International recognition

Singapore stock market has grown tremendously and as of 30 April 2004, the total market capitalization of all companies listed on the SGX was about S$400 billion.  The Singapore stock market is also a regional bourse with listed foreign companies from Malaysia, China, Taiwan, Thailand, Australia, Indonesia, Philippines, Japan, and Hong Kong. As of April 2004, these companies together formed about 24% in terms of number of total listed companies and approximately 39% of total market capitalization of all companies listed on SGX.   SGX is well known as an efficiently-regulated marketplace and companies listed on SGX will be perceived as having good corporate governance and disclosure. As a listed company in one of the premier financial centres in the world, Singapore-listed companies also enjoy international recognition that provides a springboard for global growth. 

Access to international investors and marketplace

Over the years, Singapore has developed into a major hub for international fund managers. Based on a survey by the Monetary Authority of Singapore (“MAS”), as of end 2002, the total assets under management by Singapore financial institutions was S$343.8 billion and the total number of investment professionals was 1,012 comprising 695 portfolio managers, 294 investment analysts and 23 economists. A listing in Singapore will provide a company with greater exposure to a large pool of international investors.  As part of its efforts to be a global marketplace, the SGX has also built up strong alliances with other stock exchanges in the region including co-trading arrangement with the Australia Stock Exchange that allows investors to buy and sell shares of selected companies in both exchanges. SGX has also signed two memorandum of understanding with the Shanghai Stock Exchange and Shenzhen Stock Exchange on 15 April 2004 to foster a continuing relationship with the two China stock exchanges. 

Comprehensive research coverage

To promote the Singapore stock market and raise the profile of companies listed in Singapore, the SGX and MAS have together contributed a sum of S$7.5 million to fund research coverage for companies in Singapore by research firms. At least more than 100 listed companies have taken advantage of this scheme to raise their profiles among international investors. 

Choice of accounting standards

A company seeking a listing in Singapore may use any of the following accounting standards: 

  • US GAAP
  • International Accounting Standards
  • Singapore Statement of Accounting Standards

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