MAS proposes key changes in IPO rules and processes to boost SGX's appeal
MAS proposes key changes in IPO rules and processes to boost SGX's appeal
Source: Business Times
Article Date: 16 May 2025
Author: Ranamita Chakraborty
Key focus areas include streamlining prospectus disclosures for primary listings, where issuers will focus on the disclosure of core information that are most relevant and material for investors.
The Monetary Authority of Singapore (MAS) is currently seeking feedback on proposed changes to simplify prospectus requirements and enhance investor outreach for initial public offerings (IPOs), it announced on Thursday (May 15). The consultation is open until Jun 14.
This is in tandem with a separate Singapore Exchange Regulation (SGX RegCo) consultation paper, which is seeking feedback on changes to rules on listing admission and post-listing disclosures.
Collectively, these proposals from MAS and SGX RegCo aim to facilitate more listings by issuers, alongside enhanced disclosures for investors.
They are part of the initial set of recommendations introduced by the MAS equities market review group in February, to boost the competitiveness of Singapore's equities market.
MAS said its proposals aim to streamline the listing process for issuers and provide broader options for reaching potential investors.
The key focus areas include streamlining prospectus disclosures for primary listings, where issuers will focus on the disclosure of core information that are most relevant and material for investors. This will concentrate issuers' effort on disclosures that are most pertinent for decision-making by investors.
For secondary listings, MAS proposes aligning disclosure requirements with baseline international disclosure standards which are already commonly adopted by most established markets, including Singapore.
Specifically, this includes the International Disclosure Standards for Cross-Border Offerings and Initial Listings by Foreign Issuers, as issued by the International Organization of Securities Commissions (Iosco).
These simplified requirements allow issuers who already have primary listings elsewhere to use the same prospectuses with minimal adaptation for their secondary listing on SGX, said MAS.
Additionally, it is proposing changes to existing legislation to allow issuers to gauge investor interest earlier in the IPO process. This will support bookbuilding efforts as well as give investors more time to familiarise themselves with the issuers and their intended offers.
MAS said it has considered feedback and suggestions from industry stakeholders in formulating these proposals, while also taking into account the requirements and practices of major equities markets.
Other proposals from the review group are expected later in the year in line with the moves to attract high-quality listings.
Views, suggestions and comments can be submitted via a FormSG link.
Market players told The Business Times that MAS' initiatives are welcome moves. 'As major financial markets have adopted the Iosco standards for prospectus compliance, it will facilitate more foreign listed companies to do a secondary listing on SGX,' said Robson Lee, partner at Kennedys Law. He noted that the current proposals will allow issuers to adapt their original offer document from their home exchange without needing to comply with any additional prescriptive requirements under the Singapore Securities and Futures Act.
James Leong, CEO of trading firm Grasshopper Asia, pointed out that while Singapore has significant assets under management, very little of that capital is flowing into SGX-listed companies. He views the proposals as 'a welcome first step towards enhancing SGX's competitiveness and appeal' adding that Singapore has the opportunity to establish itself as a 'preeminent regional equities hub'.
Source: The Business Times © SPH Media Limited. Permission required for reproduction.
MAS: Consultation paper on streamlining of prospectus requirements and broadening of investor outreach channels
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