Singapore Exchange brings dual-class IPO battle to Hong Kong, offers better listing terms
Singapore Exchange officials say two massive Hong Kong-based companies plan to list around July and August
Singapore Exchange (SGX) expects to let the first company with a dual-class share structure list in the second half of this year as it looks to complement the Chinese onshore and Asian capital markets in allowing tech firms to raise funds, bourse officials told a media briefing in Hong Kong on Friday.
Chew Sutat, executive vice-president of SGX said that a couple of “multibillion-dollar market cap” companies from Hong Kong are planning to list in Singapore in July and August, including one with a dual-class listing structure that has operations in Hong Kong, Southeast Asia and China.
Hong Kong and Chinese companies make up 20 per cent of the market cap of companies listed in Singapore, according to Chew.
“We see ourselves playing an offshore complementary role to the emerging markets in Asia and that includes China and to a certain extent Hong Kong companies that are looking to expand overseas,” Chew said.
Singapore is expected to release its dual class share rules in the coming weeks and aims to be a lot more freer than other markets.
“For example, if you list an IPO in Hong Kong, the cornerstone investor is expected to be locked up for six months, but Singapore will not have that issue,” Chew said.