Singapore Exchange to boost listings with dual-class shares

Lloyd Doyle
January 19, 2018

On the same day, the MAS stated that it "supports SGX's decision to allow the listing of companies with dual-class share structures in Singapore", adding that the structure is already permitted in the US and Europe. "Some of these companies may need a capital structure that supports a rapid scaling up of their business", said Loh.

SGX posted net profit of S$88.4 million for its second quarter ending Dec 31, according to a media release by the bourse operator.

Besides, SGX's Board of Directors has declared an interim dividend of 5 Singapore cents per share, payable on February 5, which is also the same with that for the same period of previous financial year.

Higher revenue came from the derivatives segment, where volumes were up but average fees per contract declined. Last year, SGX kicked off a public consultation on dual-class shares.

It will then consult the market. Dual-class shares typically give one set of shareholders greater voting rights than others.

But dual-class shares have also been criticised by corporate governance activists, who have warned that the structure could be abused by company insiders.

"MAS will review the safeguards that SGX will be proposing to mitigate these risks, as well as SGX's education initiatives to help investors better understand the unique risks", the regulator said. The proposal came three years after Alibaba listed in NY after Hong Kong refused to accept its governance structure.

Hong Kong is also set to allow dual-class shares under rule changes to be proposed by Hong Kong Exchanges and Clearing (HKEX), the city's exchange operator which is raising the stakes in a battle against NY for blockbuster Chinese initial public offerings.

"The message is clear: Singapore is open for business, and the authorities will strike a good balance between business-friendliness and robust regulation", she said.

Other reports by Iphone Fresh

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