New SGX secondary listing framework to woo more foreign firms: BNY Mellon

Almost half of listed companies are already from overseas.

The SGX’s proposed changes to the secondary listing framework will cause foreign firms to flock to the country, the Bank of New York Mellon announced in a statement today.

According to BNY Mellon, the streamlined framework will make Singapore a much more compelling destination for foreign investors.

“This move could be the key which unlocks the door to attracting an even greater number of overseas issuers which, in turn, could draw investors, improve market liquidity and strengthen Singapore’s status as a world leading financial centre,” the release noted.

Here’s more from BNY Mellon:
“40% of companies listed on SGX today are from overseas and there are 33 companies with a secondary listing,” notes Neil Atkinson, Head of BNY Mellon’s depositary receipts business in Asia-Pacific.

“Should SGX’s proposals go ahead, we expect this number to increase as it makes Singapore a much more compelling proposition for the increasing number of foreign companies gazing east and eyeing access to the growing pools of available capital and business prospects in the region.”

“Singapore is fast approaching US$2 trillion in assets under management and lays claim to be the largest institutional investor base in Asia. This is a compelling draw for foreign companies seeking opportunities to access capital and expand their shareholder base in Asia,” continued Atkinson.

“SGX provides for a number of avenues for DR or potential DR issuers. Singapore depositary receipts (SDRs) and global depositary receipts (GDRs) are ideal solutions for overseas issuers to access SGX. DRs can assist overseas companies listing in Singapore if their home jurisdiction prevents them from cross listing their existing shares in more than one country, or prevents them listing their shares overseas at all, for example, India.”