S'pre stock exchange unveils new draft listing rules: Report
S'pre stock exchange unveils new draft listing rules: Report
SINGAPORE (Dow Jones): The Singapore Exchange, or SGX, Friday
released the first draft of its proposed revisions to rules for
listing of companies on the bourse, the Business Times reported
Saturday.
The major changes proposed by SGX include allowing applicants
for listing on the exchange's mainboard to have a public float
below the 25 percent currently required provided their market
capitalization exceeds S$300 million (US$171.43 million), the
newspaper reported.
The lower public float, subject to a floor of 12 percent, has
been proposed in response to the difficulty faced by issue
managers in meeting the 25 percent requirement when bearish
conditions prevail and the market is unable to absorb a large
initial public offering, the report said.
This difficulty has led to many applicants seeking waivers
from the rule, the SGX said, according to the report.
The exchange also proposes to reduce the minimum number of
public shareholders required for mainboard applicants from the
current 1,000 to 500. But to ensure that there is sufficient
public interest to justify a listing, each of the proposed
minimum 500 shareholders must hold a parcel of securities worth
at least S$2,000, the report said.
The proposed amendments are part of the reforms undertaken by
the SGX to update its regulations and to ensure greater
transparency, the report added.
Apart from overhauling the listing rules to meet changing
needs and to reflect current global market practices, the listing
manual will also be reorganized to make it more user friendly,
the SGX said, according to the report.
Other changes proposed include listing procedures, covered
warrants requirements, prospectus disclosure requirements and
continuous disclosure, and clarification of the exchange's powers
with regard to suspension and delisting of companies, the report
added.
The SGX's proposed amendments are subject to the approval of
the Monetary Authority of Singapore, the report said.
Meanwhile, the chairman of The Singapore Exchange Ltd., J.Y.
Pillay, was additionally "designated as an executive and non-
independent director" of the company on August 16, the company
which runs the local bourse said in a statement late Friday.
In a brief statement, the exchange said the move by its board
was "in recognition of the amount of time the chairman spends on
the affairs of the company."
However, the change in Pillay's status doesn't affect the
division of responsibilities between him and chief executive
Thomas Kloet, the company said.
"Notwithstanding the designation, the CEO remains the most
senior executive in the company and bears executive
responsibility for the company's business, while the chairman
bears responsibility for the workings of the board," it said.
According to a Business Times report published Saturday, an
exchange spokesman said that change in Pillay's designation has
been approved by the Monetary Authority of Singapore.