Singapore government, SGX announce measures to boost stock market
An escalator previous an digital display and ticker board on the Singapore Change.
Lee Yen Nee | CNBC
SINGAPORE — The Singapore authorities on Friday introduced a sequence of initiatives to spice up the home inventory market, together with co-investing in a brand new fund to assist “promising high-growth” corporations.
The brand new fund will probably be arrange with state investment firm Temasek. It should begin with 1.5 billion Singapore {dollars} ($1.1 billion) to assist corporations elevate capital via public listings — whether or not major, secondary or twin — within the Southeast Asian city-state.
Listed here are different initiatives that had been introduced:
- The funding arm of Singapore’s Financial Improvement Board intends to ascertain a brand new fund to put money into later-stage corporations and work towards an eventual itemizing within the city-state. The fund will begin with 500 million Singapore {dollars}.
- The monetary regulator, Financial Authority of Singapore, will enhance its grants to assist corporations defray the price of listings.
- The change operator, Singapore Exchange, will assist high-growth corporations to lift funds privately previous to a public itemizing.
Earlier this month, the SGX introduced new guidelines to permit the itemizing of particular goal acquisition corporations or SPACs. The transfer was seen as a method to revive Singapore’s IPO market.
In an unique interview with CNBC, SGX Chief Govt Loh Boon Chye stated there is a “strong pipeline” of potential SPAC listings — and the primary may come via in a few weeks.
Singapore’s inventory market has outperformed lots of its regional friends this yr, with the benchmark Straits Times Index gaining round 7.8% as of Thursday’s shut.
However preliminary public choices on the Singapore Change have been lackluster compared. Within the first half of this yr, Singapore drew simply three IPOs that raised $200 million in proceeds, whereas fellow monetary hub Hong Kong had 46 listings that raised $27.4 billion.
— CNBC’s Weizhen Tan contributed to this report.
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