Industry watchers split over move on dual-class shares

Singapore

NOW that the Singapore Exchange (SGX) has opened up the issue of dual-class share listings, it seems inevitable that a significant portion of the market will be disappointed, whichever way the regulations head.

Those supportive of allowing dual-class structures point to the potential for SGX to beat out its rivals in attracting initial public offerings (IPOs), especially for high-profile tech companies, and to the various safeguards proposed that would help to address governance risks.

As DBS head of capital markets Tan Jeh Wuan put it: "This will add to the options available to international companies that are considering listing on the SGX."

But the critics are just as adamant that dual-class shares are bad news waiting to happen, citing doubts about the efficacy of the proposed safeg…