SGX’s proposed changes to make secondary listing a breeze

But companies from developing markets will still brave hurdles.

There might be new rules in store for companies aiming for a secondary listing at the SGX, after changes to the secondary listings regulatory framework were proposed earlier this month.

According to Drew and Napier, the proposed changes will make it easier for companies from developed markets to achieve a secondary listing on the SGX.

The new rules state that a company whose primary listing is in a Developed Market as
defined by SGX can be secondary listed on SGX without any further regulatory review.

The Developed Markets list include countries such as the United States, the United Kingdom, Japan, Germany, Australia, Canada, France, Hong Kong, New Zealand, Spain, Sweden, and Switzerland.

SGX’s consultations will be open until Wednesday, 25 June.

Here’s more from Drew and Napier:
Under the proposed new framework, which is intended to be effective from the 4th quarter of 2014, the place of primary listing is the predominant factor in determining if a company would be classified as being from a Developed Market or a Developing Market.

For companies from Developed Markets, it is likely that this would mean a SGX secondary listings process that has greater clarity and expediency given that such companies would not be subject to a SGX regulatory review and would not have any additional continuing listing obligations imposed upon them.

For companies from Developing Markets, it would seem that the process would be substantially the same as under the current framework.

SGX has indicated that these proposed changes are aimed at providing greater clarity on the regulatory review methodology that SGX applies to secondary listing participants and the regulatory oversight of secondary listed companies.