On Friday, the government unveiled a package of initiatives to attract high-growth, high-tech local and regional companies that will get listed on the Singapore Exchange (SGX).
With an initial tranche of $1.5 billion, the biggest initiative is to set funds that will assist promising high-growth companies to raise capital from public listing in SGX. The funds will be co-invested by the Government and Temasek. The cash flow of firms that are growing fast usually exceeds the growth of the overall economy. In contrast, most companies do not pay dividends to stockholders, instead choosing to reinvest profits into their business expansion. It is likely that EDBI, the investment arm of the Economic Development Board, will set up this IPO fund – with an initial tranche of $500 million. It will mainly be focused on future technology innovators and market leaders.
Additionally, the Monetary Authority of Singapore (MAS) will improve its Grant for Equity Market Singapore (Gems) scheme, launched in early 2019, to help companies seeking listing as well as to build the equity research ecosystem in Singapore.
Gan Kim Yong, Minister for Trade and Industry said that the nation will make a concerted push to establish itself as the listing destination of choice for the local and global market leader.