Why list in Singapore

1 one of the premier financial centers
Singapore has developed into one of the premier financial centers with complete bank services. Foreign companies constitute almost 40% of its total market capitalization, and over 800 international fund managers.

2 conducive business and regulatory environment
The Singapore stock is doing transactions with no-stock but computers. The systems connect with the foreign trading companies or securities people. In this way the trading expenses are reduced.

The investors have confidence on the Singapore listing companies because of the strict listing regulations and good reputation of the market management.

3Invest in public accumulation fund

The accumulation fund can be S$63,800 million.

Introduction

SGX was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement. It has been supported by the Singapore government.

In June 2002, the total market amount had been USD 187,800 million.

There are more than 380 companies listing in SGX.

There are over 110 companies listing in the SIMEX.

Requirements for SGX Main Board

Pre-Tax Profits

A company, foreign or local incorporated, seeking a primary or secondary listing on the Main board of the SGX may have cumulative pre-tax profit of at least $7.5 million over the last 3 consecutive years, with a pre-tax profit of at least $1 million in each of those 3 years. If cumulative pre-tax profit is at least $10 million for the latest 1 or 2 years, it will also meet the requirements.

Market capitalization is at least $80 million at the time of the initial public offering, based on issue price, it will meet the listing requirements for those that don’t meet the above.

Finance
Healthy and complete finance statement

Management

Stable management means that the management of the company is unchanged. If there is important persons leave the company, it is required for the company to certify that the leave of them don’t influence the management of the company.

Others

25% of issued shares are in the hands of at least 1000 shareholders (For market capitalization reaches S$300 million, shareholding spread will varies between 12-20%);

Apply to the regulations of the stock companies’ organization in the Singapore company law;

At least two independent directors are authorized to the committee;

With no problem of concatenated listing;

No record of breaking laws in 3 years.

Process for listing on SGX

A company initiates the listing process by appointing a Singapore-based financial institution to be its sponsor and lead manager. The lead manager is usually a member company of SGX, a merchant bank or other similar institutions acceptable to SGX.

The lead manager will assume an active role and prepare the company for listing. Besides managing the launch, the lead manager also submits the listing application on behalf of the company. In addition, the lead manager will liaise with SGX on all matters arising from the application for listing.

Apart from the lead manager, the company needs to appoint a lawyer to oversee the legal aspects of listing. In addition, the appointed certified public accountant will provide the company with an initial evaluation of its readiness to go public, assist in upgrading its management capabilities and in preparing the launch. Prior to and during the launch, the company will have to engage the service of an experienced public relations firm to help enhance its appeal and convey its corporate messages effectively to the investing public.

Timetable

Prior to submission of the listing application, the company is advised to consult SGX to resolve any specific issues. This will speed up the listing process and reduce any additional costs that may arise due to a delay. The timeframe for a listing varies for different companies, ranging from two months to two years. On the average, the whole process should last about four to eight months. Given that time is of the essence, the company should budget a reasonable amount of management time and appoint the appropriate professionals to assist in the listing process.
The indicative timeline for the listing process is as follows:

The ways for Chinese enterprises to list aboard

Two ways for Chinese enterprises to list aboard

Directly listing aboard