SGX clarifies on secondary listing of dual-class shares

Singapore Exchange (SGX) said companies with a dual-class share (DCS) structure that is primary listed in "developed markets" can seek a secondary listing on the exchange.

Responding to queries during the DCS public consultation process, SGX said yesterday it will not impose additional post-listing conditions for companies that are listed on any of the 22 markets the international index providers FTSE and MSCI classify as "developed".

However, the companies are required to make continuous disclosures via SGXNet of all announcements made to the home exchange.

These companies must also maintain their primary listing on the home exchange, which will maintain primary regulatory oversight of the issuer, it added.

All companies applying for a secondary listing are also subject to the listings review process and must satisfy the suitability criteria.

"The secondary listing of companies, including DCS companies, in Singapore provides investors with more choice and enables these shares to be traded during the Asian time zone," said SGX chief executive officer Loh Boon Chye.

"Should a DCS company secondary-list on SGX, it could enhance overall market knowledge and familiarity with the risks and benefits of DCS companies," he said. Initial secondary-listing applications from DCS companies will be referred to the independent Listings Advisory Committee.

Singapore Exchange Regulation chief executive Tan Boon Gin said: "While the existing secondary-listing framework accommodates DCS companies, this does not presume that we will adopt a primary DCS listing framework.

"We are still evaluating the feedback received, and target to update the market before the year end," he added.

A version of this article appeared in the print edition of The Straits Times on July 29, 2017, with the headline 'SGX clarifies on secondary listing of dual-class shares'. Subscribe