Basic Listing Requirements on Mainboard of Singapore Stock Exchange

Singapore Stock MarketBasic listing requirements on the mainboard of the Singapore Stock Exchange (SGX)Methods of ListingPrimary Listing

• Companies must meet SGX’s initial listing requirements outlined below

• After listing, companies have to comply with all SGX’s continuing listing obligations Secondary Listing

• Companies that are already listed on another exchange of equivalent rules as SGX are able to seek a secondary listing on SGX without having to comply with SGX’s continuing listing obligations.

Global Depository Receipts

• An international company that is already listed on its home exchange can also choose to list and raise funds on SGX via GDRs.

• As GDRs are specialist products offered only to institutional and accredited investors, GDR listing requirements are relatively less demanding compared with primary and secondary listings where retail participation is allowed.

IPO or IntroductionWhether a company is listing on SGX on a primary or secondary basis, the offering at the point of listing can be done in following ways:IPO

• Issue of new shares or offer of existing shares to the investing public.

• A prospectus has to be lodged with MAS and prepared in accordance with the Securities and Futures Regulations (SFR).

• During the course of the listing process, the prospectus will be subject to public comments for approximately 3 to 4 weeks. (This may be extended at the discretion of MAS.)Introduction

• No shares are offered to the investing public.

• Suitable for companies that may not require funds at the point of listing.

• An introductory document needs to be lodged with MAS and prepared in accordance with SFR.

• The introductory document is not subject to public comments.Mainboard Listing RequirementsA company may list on the Mainboard under any of the three criteria below, which cater to a wide spectrum of companies with different business models.

Criteria 1Pre-Tax Profits : 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 Market

Capitalisation : NA

Shareholding Spread : 25% of issued shares in the hands of at least 1000 shareholders (For market capitalisation > S$300 million, shareholding spread will varies between 12-20%).

2000 shareholders worldwide in the case of a secondary listing

Operating Track Record : 3 years

Continuity of Management : 3 years

Accounting Standard : Singapore, US or International Accounting Standards

Continuing Listing Obligations : Yes

Domicile : At the discretion of the issuer

Trading and Reporting Currency : At the discretion of the issuer

Business Operations : No requirement for operations in

SingaporeIndependent Directors : At least 2 residents in Singapore




Criteria 2

Pre-Tax Profits : Cumulative pre-tax profit of at least $10 million for the latest 1 or 2 years

Market Capitalisation : NA

Shareholding Spread : 25% of issued shares in the hands of at least 1000 shareholders (For market capitalisation > S$300 million, shareholding spread will varies between 12-20%). 2000 shareholders worldwide in the case of a secondary listing

Operating Track Record : NA

Continuity of Management : 1 or 2 years as the case may be

Accounting Standard : Singapore, US or International Accounting Standards

Continuing Listing Obligations : Yes

Domicile : At the discretion of the issuer

Trading and Reporting Currency : At the discretion of the issuer

Business Operations : No requirement for operations in

SingaporeIndependent Directors : At least 2 residents in Singapore



Criteria 3

Pre-Tax Profits : NA

Market capitalisation : at least $80 million at the time of the initial public offering, based on the issue price

Shareholding Spread : 25% of issued shares in the hands of at least 1000 shareholders (For market capitalisation > S$300 million, shareholding spread will varies between 12-20%). 2000 shareholders worldwide in the case of a secondary listing

Operating Track Record : NA

Continuity of Management : NA

Accounting Standard : Singapore, US or International Accounting Standards

Continuing Listing Obligations : Yes

Domicile : At the discretion of the issuer

Trading and Reporting Currency : At the discretion of the issuer

Business Operations : No requirement for operations in Singapore

Independent Directors : At least 2 residents in Singapore25th December 2007



Source : www.sgx.com