THE stock exchanges of Singapore and Oslo inked an agreement on Wednesday to facilitate the process of dual listings of companies on each other's bourse.
A Memorandum of Understanding (MOU) was signed between the Singapore Exchange (SGX) and Oslo B�rs - a partnership which will enhance Singapore's reputation as an international maritime and financial centre. This is the SGX's first pact of its kind with another exchange, and also marks the first formal cooperation between the two parties.
The dual listing framework will allow companies to diversify their shareholder base, build their profile and provide an additional avenue for raising funds.
Mrs Lim Hwee Hua, Minister in the Prime Minister's Office and Second Minister for Finance and Transport, noted that the MOU will 'boost Singapore's efforts to position itself as a leading shipping and maritime hub in Asia'.
Mrs Lim, who witnessed the signing, said: 'The MOU will enhance the attractiveness of the two exchanges as destinations for listings by shipping, offshore and energy companies, as well as those in other sectors. This will in turn reinforce the standing of Singapore and Norway as international maritime and financial centres.'
SGX chief executive Hsieh Fu Hua said: 'With this partnership, we can look forward to having companies list on both exchanges, capitalising on a larger investor pool across two time zones. This will also enhance our listing venues and potentially attract more listing aspirants.'
Mr Hsieh noted that both SGX and Oslo share strengths in the energy, offshore and marine sectors, with 47 of these companies listed on SGX and 89 such companies listed on Oslo, making a total of 136 companies with a combined market cap of $185 billion.
'Trading interest in these stocks has remained resilient in spite of the difficult market conditions,' he added.
Oslo B�rs CEO Bente Landsnes said the collaboration 'supports the fact that both Singapore and Norway have long, and to a great extent, similar traditions when it comes to shipping and energy-related industries'.
The signing was also witnessed by Norwegian ambassador Janne Julsrud and SGX chairman J Y Pillay.
Read the full report in Thursday's edition of The Straits Times.
