SGX, IMDA to collaborate to help companies access capital markets efficiently

The SGX Centre at 4 Shenton Way.
The SGX Centre at 4 Shenton Way. ST PHOTO: SEAH KWANG PENG

SINGAPORE - Singapore Exchange (SGX) and Infocomm Media Development Authority (IMDA) have signed a memorandum of intent to help fast growing IMDA-accredited companies get efficient access to Singapore's private and public capital markets for expansion.

The aim is to lower access barriers for technology companies into the capital markets, catalyse more high tech initial public offerings and increase Singapore's attractiveness as a venue for capital raising, a joint press release issued by SGX and IMDA stated on Wednesday (May 31).

Minister for Communications and Information Yaacob Ibrahim, who witnessed the signing, said the collaboration will provide high-growth Infocomm Media (ICM) companies access to capital markets, allowing them to leverage Singapore's well-developed financial ecosystem to support their growth and expansion plans.

"I encourage ICM companies with innovative products and services to set up their base of operations in Singapore so that they can take full advantage of these programmes and platforms," Dr Yaacob said.

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Under the MOI, SGX will partner the Accreditation@IMDA (A@IMDA) programme, which curates and nurtures a growing portfolio of promising tech companies for growth.

They will identify and galvanise key parties in the financial ecosystem to support the accredited companies in their IPO journey, including facilitating pre-IPO funding, advising them on listing processes and preparing them for IPO listing.

A@IMDA will collaborate with SGX, IPO sponsors, and law and audit firms to help lower the information barriers and costs for the companies in the processes leading to IPO listing.

"Our collaboration with IMDA will foster a keener appreciation among Singapore technology firms of our capital markets as a source of funding, and offer them the potential of expanding their business into the broader region," SGX chief executive officer Loh Boon Chye said. "We hope to galvanise more partners in the financial ecosystem to engage with these fast growing, innovative companies."

Mr Tan Kiat How, chief executive at IMDA, said: "There are immense opportunities in the coming years for Singapore-based ICM companies as economies in the region transform and digitalise. The partnership between SGX and IMDA is an important step in deepening the collaboration between the technology and financial ecosystems, and enables both groups to benefit from this rapid growth."