Posts: 4,366
Threads: 96
Joined: Aug 2011
Reputation:
85
30-10-2025, 02:50 PM
(This post was last modified: 30-10-2025, 02:51 PM by weijian.)
Wow~ SGX mainboard listing criteria will be relaxed (lower profit test threshold) and pre avenue companies that don't meet the listing criteria can "engage" SGX RegCo on "possible listing pathways". The financial watch list will also be removed.
And moving on, it is also proposed that SGX RegCo will be the "one stop station" for IPOs
SGX RegCo advances disclosure-based regime; proposes rule changes on MAS’ proposal to consolidate listing review functions under SGX RegCo
“We are progressing with our initiatives to strengthen Singapore’s position as a leading international capital markets hub. The Review Group’s measures are holistic. Enterprise efforts improve liquidity and valuations, while regulatory efforts enhance market efficiency and price discovery. This complementary approach drives market discipline and raises governance standards, ensuring that high regulatory standards are maintained,” said Mr Tan Boon Gin, CEO of SGX RegCo.
https://links.sgx.com/FileOpen/20251029_...eID=865231
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
Posts: 1,514
Threads: 29
Joined: Jan 2013
Reputation:
33
(30-10-2025, 02:50 PM)weijian Wrote: Wow~ SGX mainboard listing criteria will be relaxed (lower profit test threshold) and pre avenue companies that don't meet the listing criteria can "engage" SGX RegCo on "possible listing pathways". The financial watch list will also be removed.
And moving on, it is also proposed that SGX RegCo will be the "one stop station" for IPOs
SGX RegCo advances disclosure-based regime; proposes rule changes on MAS’ proposal to consolidate listing review functions under SGX RegCo
“We are progressing with our initiatives to strengthen Singapore’s position as a leading international capital markets hub. The Review Group’s measures are holistic. Enterprise efforts improve liquidity and valuations, while regulatory efforts enhance market efficiency and price discovery. This complementary approach drives market discipline and raises governance standards, ensuring that high regulatory standards are maintained,” said Mr Tan Boon Gin, CEO of SGX RegCo.
https://links.sgx.com/FileOpen/20251029_...eID=865231
Pre-revenue? That's only limited to highly speculative enterprise. (Space, biotech etc).
" In respect of the quantitative admission criteria, SGX RegCo will lower the profit test threshold for new listings from S$30 million to S$10 million, aligning with other major exchanges."
That basically cuts out most high-flying tech startups, that reinvests profits for growth. This could help some SMEs get listed but not going to attract more innovation-driven firms.
Would hope to see revenue and/or market-cap based tests (like HKEX and NASDAQ) instead of profit test. SGX already faces a disadvantage, due to lack of liquidity.
This is not going to move the needle.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
Posts: 4,366
Threads: 96
Joined: Aug 2011
Reputation:
85
Much changes to unpack here.
(1) The most exciting one would be a new "Global Listing Board" for the dual listing bridge. While this sounds to be applicable only for new IPOs, what immediately comes to mind would be whether "Grab Holdings" will do "no frills" secondary listing on this new board?
I suppose to make this work, the Global Listing Board will follow revenue/market cap test?
(2) The proposed broker custody account is also another interesting fundamental change. It is the singular no-go factor for the development of a derivative market for Spore stocks. I suppose there is a new generation of folks who are happier trading derivatives over owning the local stock.
(3) Another 60% of the 5bil EQDP has been disbursed. The final 20% will be left to some time in 2026.
Some of these measures are not going to stick. But the 1-2 major ones that do, will have an outsized impact on the entire local scene. I do have much faith in the execution capability of the Spore authorities. So now it will be up to the companies themselves to respond - whether in terms of reviving their business models, creating new revenue streams and becoming more "shareholder friendly".
Review Group Completes Equities Market Review, Unveils SGX-Nasdaq Dual Listing Bridge, S$30 million “Value Unlock” Package, and Second Batch of EQDP Asset Managers
- The establishment of a dual listing bridge connecting the Singapore Exchange (SGX) and Nasdaq.
- The launch of a S$30 million “Value Unlock” Package to help listed companies unlock shareholder value and deepen engagement.
- Appointment of the second batch of asset managers under the S$5 billion Equity Market Development Programme (EQDP), with a total of S$2.85 billion placed across six managers.
- Trading and market structure enhancements to strengthen market making, modernise post-trade custody, and reduce board lot size.
https://www.mas.gov.sg/news/media-releas...ket-review
Summary Infographic:
https://www.mas.gov.sg/-/media/mas/news/...aphics.pdf
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
Homepage
PR Newswire
