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Information on IPO in Singapore

Information on IPO in Singapore. PROFILE OF SINGAPORE EXCHANGE LISTING REQUIREMENTS. A Pan-Asian Market Number of Listings. As at end Sep 2000. Foreign Enterprises Share of Capitalisation. As at end Sep 2000. Sectoral Classification of Companies listed on SGX.

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Information on IPO in Singapore

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  1. Information on IPO in Singapore

  2. PROFILE OF SINGAPORE EXCHANGE • LISTING REQUIREMENTS

  3. A Pan-Asian Market Number of Listings As at end Sep 2000

  4. Foreign EnterprisesShare of Capitalisation As at end Sep 2000

  5. Sectoral Classification of Companies listed on SGX The manufacturing sector includes the electronics sector

  6. A Pan-Asian Market Number of 1999 IPOs For year ended Dec 1999

  7. A Pan-Asian Market1999 IPO Proceeds For year ended Dec 1999

  8. Philippines Ionics PRC Cytech Software Malaysia Nucleus PK Tech New Zealand - Brierley Australia Easycall Hong Kong Kingboard I-Comm Technology Kyosha Lafe Technology Giant Wireless North 22 FDS Jadason United States Reed Group Year 2000 Foreign Listings

  9. Funds Raised By Companies listed in 2000 Funds Raised (S$) Number of companies

  10. Market Capitalisation of Companies listed in 2000 Market Cap (S$) Number of companies

  11. Turnover Velocity Dollar Turnover/Market Cap Source: Federation Internationale Des Bourses De Valeurs

  12. Ease & Efficiency of Trading • Overseas investors can trade SGX listed shares through the Internet • Announcements by listed companies are available real time on the SGX website • A T+3 settlement period for trades done

  13. MEASURESTO ATTRACTGLOBAL PARTICIPATION • Establishment of an electronic link with Australian Stock Exchange to cross trade SGX and Australian listed stocks • Joint Venture with Amex to trade Amex listed exchange traded funds on SGX • MOU with NSE and IISL to trade futures contracts based on S&P CNX Nifty Index

  14. MEASURESTO ATTRACTGLOBAL PARTICIPATION • July 2000 : - Opened the membership for new clearing members to perform trading & clearing services - Allow dual membership of both securities & derivatives markets • October 2000: Brokerage rates are now freely negotiable

  15. Flexible Rules…

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

  17. Domicile & Base of Operations • Free choice of domicile of listed company • Eg. Bermuda … [Non exhaustive] • No need for operations in Singapore • Two independent directors, one resident in Singapore

  18. Choice of Currency • Free choice of trading currency. • Some of the more popular choices among foreign companies: • S$ • US$ • HK$ .. (non-exhaustive) • Choice of functional and/or reporting currency: • S$ • US$ • Rupee .. (non-exhaustive)

  19. Investor Confidence • International standard of disclosure and corporate governance • Well regulated financial intermediaries • Sound financial system

  20. Resilience Index‘Asian economies’ vulnerability to a US slowing Source: SocGen Securities Research (May 2000)

  21. Ease of Access to Capital Market

  22. Availability of Funds • Strong presence of foreign & local fund managers (664 fund managers & 249 investment analysts) • Total funds managed (End of 1999) =S$246.2 billion • Venture Capital Funds (1999) Raised = $1.4 billion Managed = $10.2 billion

  23. PROFILE OF SINGAPORE EXCHANGE • LISTING REQUIREMENTS

  24. SGX-Mainboard Listing Criteria

  25. Moratorium (Lock-up) • Vendor share sales allowed at IPO Promoters: - Controlling shareholders and their associates - Executive directors who own 5% or more upon listing

  26. Why list overseas? • Need global currency for overseas expansions or acquisitions • Allows foreigners to invest in your shares • Ability to grant employee share options to employees abroad • Attract funds from Non-Resident Indians • Raise profile of company abroad

  27. Cost of Listing on SGX • Initial Listings Fees: maximum of US$11,700 • Annual Listing Fees: maximum of US$1,170 • Generally Total Cost of Listing = 5% of proceeds raised

  28. Stock Exchange Profile Singapore Exchange offers… • A Pan-Asian market • Well regulated, stable and transparent • Access to liquidity & capital • Accessible market & flexible rules • Low issuance cost

  29. ...In comparison, proportion of foreign companies listed on HKSE As at end Aug 2000

  30. Rule Advantages.. • Comprehensive listing criteria • Flexible rules • Equal treatment with local companies • Choice of listing currency

  31. Flexible Listings Options

  32. SGX Then NASDAQ/NASDAQ Then SGX • List on SGX to raise capital to build out business model in Asia • Enable foreign investors to invest in your shares round the clock • Access investors both in US and Asia in two steps to enhance fund raising

  33. Simultaneous SGX & NASDAQ • Business model sufficiently developed for US market • Obtain US valuation, access liquidity both in US and Asia • Avoid becoming orphan stock on NASDAQ • Lower listing cost- one prospectus for both • => Access investors simultaneously in US and Asia to enhance liquidity, valuation and minimise listing cost

  34. Share Price Performance on NASDAQ vs SGX

  35. CSM Volume Traded on NASDAQ vs SGX (adjusted for the difference in number of shares offered in the 2 markets) Total invitation: 250 mil shares US & International offering : 225 mil shares Singapore offering : 25 mil shares (10% of total invitation)

  36. ST Assembly Volume Traded on NASDAQ vs SGX (adjusted for the difference in number of shares offered in the 2 markets) Total invitation size : 170 mil shares US & international offering : 153 mil shares Singapore offering : 17 mil shares (10% of total invitation)

  37. Thank You SGX website: www.sgx.com

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