On 23 May 2007, the
Singapore Exchange (the “SGX”) released a public consultation paper on changes
to its listing rules and its two boards. The proposal is to transform SESDAQ
into a sponsor-supervised regime, introducing a model similar to London’s Alternative Investment Market, which has met with significant success. This
change is aimed at promoting investor confidence and attracting smaller and
fast-growing companies, local as well as foreign, to list on the SGX. Besides
the proposed changes to SESDAQ, the SGX will also revise the entry criteria to
the Main Board which will focus on the larger and more established companies,
creating a clear delineation between the two boards. This is emphasized by a
market capitalization limit of S$150 million at the point of the initial public
offering (“IPO”) of the listing applicants for the new board.
