SGX, Nasdaq tying up to offer greater capital market access

SGX chief executive Loh Boon Chye said the collaboration would add vale to SGX-listed companies looking to raise their profile in the US.
SGX chief executive Loh Boon Chye said the collaboration would add vale to SGX-listed companies looking to raise their profile in the US.PHOTO: ST FILE

SINGAPORE - Nasdaq and the Singapore Exchange (SGX) have signed a collaborative agreement that could eventually make it possible for companies to list on both bourses at the same time.

Ultimately, the agreement seeks to enhance companies' access to capital market funding and enhance their corporate profiles in both markets.

As part of the agreement, Nasdaq and SGX are exploring the demand among corporates for a concurrent or sequential listing on both exchanges, the two bourse operators said in a statement on Wednesday (Oct 18).

Nasdaq and SGX are committed to supporting companies that are interested in pursuing this route, they added.

"The business landscape today is borderless," said SGX chief executive Loh Boon Chye.

"Fast-growing Asian companies looking to tap the capital markets can choose to list on SGX on Asian home ground, and embark on a listing on Nasdaq as they expand their business globally."

This collaboration would add value to SGX-listed companies looking to extend their reach in the capital markets and raise their profile in the United States, he added.

"Through this partnership, we also look forward to enhancing the awareness of Nasdaq's suite of corporate services in Asia," he said.

Nasdaq chief executive Adena Friedman said: "We recognise the unprecedented growth across Asia and its strategic importance in driving the next phase of innovation.

"Nasdaq is proud to be the home exchange to many successful innovators across Asia as well as a strategic partner to SGX, a pre-eminent exchange in the region."

Both parties are also reviewing the feasibility of bringing Nasdaq's International Designation programme to existing SGX-listed companies that wish to enhance their corporate profile and tap the investor base in the US.

Discussions are also underway to cross-promote Nasdaq and SGX's marketing activities in North America and Asia.

SGX has also started exploring the feasibility of streamlining the listing processes of both exchanges to create a more efficient pathway for companies seeking a listing in both venues.