MAS, SGX and Temasek to Boost Singapore Capital Market

MAS and SGX will increase support for companies seeking to register in Singapore. Temasek and EDB Investments will set up funds to facilitate fundraising.

Singaporean authorities have announced a package of initiatives to help high-growth companies raise capital in the city-state’s public equity market and expand Singapore’s proposal as a funding center.

The announcement was made jointly by MAS (Monetary Authority of Singapore), MTI (Ministry of Trade and Industry), SGX (Singapore Exchange), Temasek, 65 Equity Partners Holdings and EDB Investments.

As part of this plan, the Singapore government and Temasek will create a co-investment fund named Anchor Fund @ 65 to help promising, high-growth companies raise capital through public listings in Singapore. The fund will start with SGD 1.5 billion in its first tranche.

The fund will be managed on a commercial basis by 65 Equity Partners, an investment platform wholly owned by Temasek. In addition to anchoring the public quotations of issuing companies, the fund aims to promote good corporate governance and facilitate the creation of value for shareholders.

A separate Growth IPO Fund will be set up by EDB Investments, the investment arm of the Singapore Economic Development Board, to help private companies at an advanced stage with two or more rounds of financing from public listing to develop their operations in Singapore and become established. prepare for a possible public listing.

The fund will start with SGD 500,000 million and will seek to bridge the gap between typical growth stage EDB Investments investments and Anchor Fund @ 65 investments.

In addition, MAS will strengthen its Singapore Stock Market Grant (GEMS) The program, first introduced in early 2019, will be enhanced to support companies looking to register in Singapore and to help develop Singapore’s equity research ecosystem.

The GEMS Listing Grant will be expanded to co-finance the listing expenses of companies in all sectors equally. All companies will benefit from 70% co-financing, capped at SGD 2 million for those with a market capitalization of SGD 1 billion or more, and SGD 1 million for small companies.

Previously, co-financing was capped between 200,000 SGD and 1 million SGD, depending on whether the listing belonged to “New Technologies”, “High Growth” or “Other Sectors”.

The Research Talent Development Grant will also be extended to cover up to SGD 4,200 per month of expenses for new graduates and SGD 6,000 per month for senior professionals – up to two years. The grant will now cover research providers who serve accredited and institutional investors, and the scope of grant-eligible research coverage has been broadened.

GEMS enhancements are detailed here.

Finally, under SGX Strategic partnership model, the exchange will develop and package tailor-made capital market solutions to support high growth companies in areas ranging from private market fundraising to liquidity and profile building and global investor outreach.

The initiative will allow potential issuers to leverage SGX’s partnerships and network to access private market capital and broaden their base.
investors before a listing.

An enhanced liquidity provider program comprising over 40 active market makers and traders will also support strategic partner companies with ongoing quotes and up to 24 months of liquidity support to foster price formation for potential inclusion. in global indices.

Funded profiling initiatives such as joint marketing, targeted corporate events and global investor outreach will be customized for each strategic partner company, alongside capacity building in sustainability and specific decarbonization advisory services. industry.

The initiatives are detailed here.

Editor’s Note: This article replaced a previous story indicating that measures to stimulate Singapore’s capital markets would be announced “soon”. The previous article, from Bloomberg, had indicated that Temasek and GIC would be urged to use Singapore’s new SPAC framework to encourage or facilitate the listing of tech companies in their portfolios.

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