SGX introduces new framework on secondary listings

SINGAPORE - The Singapore Exchange (SGX) will soon differentiate secondary listings based on whether the companies' primary listings are in a developed or developing market.

Effective Nov 3, SGX will deem a company as coming from a "developed" jurisdiction if both FTSE and MSCI classify the jurisdiction of the company's home exchange as "developed".

FTSE and MSCI, which are leading international index providers, have currently classified 23 jurisdictions including Singapore as "developed".

SGX will treat all other jurisdictions as "developing".

Where a company is secondary-listed on SGX, and primary-listed on the main board of any of the 22 developed jurisdictions other than Singapore, SGX will not impose additional regulatory requirements under the new framework.

Such a company must remain primary-listed on its home exchange and comply with all relevant rules of its home exchange.

This differs from the current framework where companies may face additional requirements once secondary-listed on SGX.

For a company from a developing jurisdiction, SGX will review its home exchange's legal and regulatory requirements and may impose additional requirements to enhance shareholder protection and corporate governance standards.

SGX will continue to assess whether a company seeking a secondary listing is suitable for the Singapore market, including whether it can meet the admission criteria for SGX.

"When a company is secondary-listed on SGX, it enjoys a higher Asian profile and access to a wider pool of investors," said SGX chief executive Magnus Bocker.

"How we regulate secondary listings is now clearer for both companies and investors. We welcome more listings from developed and well-regulated jurisdictions joining our family of listed companies."

SGX is the world's most international exchange with 40 per cent of its listed companies coming from outside Singapore, including 34 secondary listings.

Its website will carry more information on secondary listings from Nov 3, including a clear segregation between these and primary-listed companies, indication whether the secondary listing is from a developed or developing jurisdiction, and the scope of additional regulatory requirements for each secondary-listed company, where applicable.

The new framework and rules on secondary listings follow a public consultation in June.