Sgx ipo in singapore
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Transcript of Sgx 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
37481.7%
8418.3%
Mainboard
SESDAQ
Foreign EnterprisesShare of Capitalisation
As at end Sep 2000
274.6767.8%
130.5532.2%
Singapore
Foreign
Sectoral Classification of Companies listed on SGX
Finance11%
Construction8%
Properties6%
Services8%
Hotels/Restaurants
4%
Commerce14%
Electricity/Gas/Water
0%
Agriculture1%
Multi-Industry4%
Manufacturing38%
Transport/Storage/Communication
6%
The manufacturing sector includes the electronics sector
A Pan-Asian Market Number of 1999 IPOs
For year ended Dec 1999
4078.4%
1121.6%
Singapore
Foreign
A Pan-Asian Market 1999 IPO Proceeds
For year ended Dec 1999
S$2,136.1762.8%
S$1,264.4437.2%
Singapore
Foreign
Year 2000 Foreign Listings
• Philippines– Ionics
• PRC– Cytech Software
• Malaysia– Nucleus
– PK Tech
• New Zealand- Brierley
• Australia– Easycall
• Hong Kong– Kingboard– I-Comm Technology– Kyosha– Lafe Technology– Giant Wireless– North 22– FDS– Jadason
• United States– Reed Group
9
12
10
9
25
2
4
0 5 10 15 20 25
2 - 6 mil
6 - 10 mil
10 - 14 mil
14 - 20 mil
20 - 100 mil
100 - 200 mil
200 - 600 mil
Funds Raised By Companies listed in 2000
Number of companies
Funds Raised (S$)
Market Capitalisation of Companies listed in 2000
4
41
14
9
3
0 10 20 30 40 50
14 - 20 mil
20-100 mil
100 mil-2 bil
2-10 bil
10-30 bil
Number of companies
Market Cap (S$)
Jan-
97F
eb-9
7M
ar-9
7A
pr-9
7M
ay-9
7Ju
n-97
Jul-9
7A
ug-9
7S
ep-9
7O
ct-9
7N
ov-9
7D
ec-9
7Ja
n-98
Feb
-98
Mar
-98
Apr
-98
May
-98
Jun-
98Ju
l-98
Aug
-98
Sep
-98
Oct
-98
Nov
-98
Dec
-98
Jan-
99F
eb-9
9M
ar-9
9A
pr-9
9M
ay-9
9Ju
n-99
Jul-9
9A
ug-9
9S
ep-9
9O
ct-9
9N
ov-9
9D
ec-9
9Ja
n-00
Feb
-00
Mar
-00
Apr
-00
May
-00
0.0%
50.0%
100.0%
150.0%Australia
Hong Kong
Singapore
Tokyo
KLSE
Turnover Velocity
Source: Federation Internationale Des Bourses De Valeurs
Dollar Turnover/Market Cap
Ease & Efficiency of Trading
• Overseas investors can trade SGX listed shares through the Internet
• Announcements by listed companies are available real time on the SGX website
• A T+3 settlement period for trades done
• Establishment of an electronic link with Australian Stock Exchange to cross trade SGX and Australian listed stocks
• Joint Venture with Amex to trade Amex listed exchange traded funds on SGX
• MOU with NSE and IISL to trade futures contracts based on S&P CNX Nifty Index
MEASURES TO ATTRACTGLOBAL PARTICIPATION
MEASURES TO ATTRACTGLOBAL PARTICIPATION
• July 2000 : - Opened the membership for new clearing
members to perform trading & clearing services
- Allow dual membership of both securities & derivatives markets
• October 2000: Brokerage rates are now freely negotiable
Flexible Rules…
Accounting Standards
• Singapore Statement of Accounting Standards
• International Accounting Standards
• US GAAP
Domicile & Base of Operations
• Free choice of domicile of listed company– Eg. Bermuda … [Non exhaustive]
• No need for operations in Singapore
• Two independent directors, one resident in Singapore
Choice of Currency
• Free choice of trading currency.Some of the more popular choices among foreign companies:
– S$– US$– HK$ .. (non-exhaustive)
• Choice of functional and/or reporting currency: – S$– US$– Rupee .. (non-exhaustive)
Investor Confidence
• International standard of disclosure and corporate governance
• Well regulated financial intermediaries
• Sound financial system
Resilience Index‘Asian economies’ vulnerability to a US slowing
00.20.40.60.8
11.2
Source: SocGen Securities Research (May 2000)
Ease of Access to Capital Market
• 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
Availability of Funds
• PROFILE OF SINGAPORE EXCHANGE
• LISTING REQUIREMENTS
SGX-Mainboard Listing CriteriaAlternative 1 Alternative 2 Alternative 3
Pre-tax profit S$7.5m over3 years;S$1 m peryear
S$10 m in 1or 2 years
Nil
Market Cap Nil Nil S$80m
Shareholdingspread
25% (10% to 25% if Market Cap>S$300m) held by 1000 shareholders
Primary listing: waiver from continuing listing obligationsif also listed on a recognised international foreign exchange
Moratorium (Lock-up)
Promoters: - Controlling shareholders and their associates - Executive directors who own 5% or more upon listing
• Vendor share sales allowed at IPO
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
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
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
...In comparison, proportion of foreign companies listed on HKSE
Domestic98%
Foreign2%
Domestic
Foreign
As at end Aug 2000
Rule Advantages..
• Comprehensive listing criteria
• Flexible rules
• Equal treatment with local companies
• Choice of listing currency
Flexible Listings Options
• 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
SGX Then NASDAQ/NASDAQ Then SGX
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
Share Price Performance on NASDAQ vs SGX
Au
g 1
99
9
Se
p 1
99
9
Oc
t 1
99
9
No
v 1
99
9
De
c 1
99
9
Ja
n 2
00
0
Fe
b 2
00
0
Ma
r 2
00
0
Ap
r 2
00
0
Ma
y 2
00
0
Ju
ne
20
00
Ju
l 20
00
Au
g 2
00
0
0
5
10
15
20
25
30
35
Sha
re P
rice
(US
$)
Creative NASDAQ price
Creative SGX price
ST Ass Nasdaq price
ST Ass SGX price
CSM NASDAQ price
CSM SGX price
CSM Volume Traded on NASDAQ vs SGX
(adjusted for the difference in number of shares offered in the 2 markets)
Total invitation: 250 mil sharesUS & International offering : 225 mil sharesSingapore offering : 25 mil shares (10% of total invitation)
No
v 99
Dec
99
Jan
00
Feb
00
Mar
00
Ap
r 00
May
00
Jun
00
Jul 0
0
Au
g 0
0
0
10
20
30
40
50
Milli
ons
Vol
ume
Trad
edCSM NASDAQ vol
CSM SGX vol
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 sharesUS & international offering : 153 mil sharesSingapore offering : 17 mil shares (10% of total invitation)
Jan 00 Feb 00 Mar 00 Apr 00 May 00 Jun 00 Jul 00 Aug 000
10
20
30
40
50
60
70
80
Mill
ions
Vol
ume
Tra
ded
ST Ass NASDAQ vol
ST Ass SGX vol
Thank You
SGX website: www.sgx.com