Go big or go home: What SGX and Nasdaq’s S$2 billion dual-listing threshold signals to the market

[SINGAPORE] The S$2 billion market-capitalisation requirement for the dual-listing bridge between the Singapore Exchange (SGX) and Nasdaq serves as a quality filter for prospective issuers, said industry watchers.

“It signals that the SGX-Nasdaq dual-listing bridge is aimed squarely at issuers with institutional depth, proven governance, and the capacity to sustain liquidity across two major markets,” said Grace Chong, head of the financial regulatory practice at law firm Drew & Napier.

She noted that companies with such a size will likely also have mature internal controls, experienced management teams that are familiar with cross-border regulatory engagements, as well as diversified revenue streams. This would reduce execution, reputational and systemic risks for both exchanges, she added.

Analysts pointed out that regulators are striving to include companies that are large enough for institutional and analyst attention and which will support trading liquidity, while still making listing accessible to high-growth firms.

The threshold is aligned with the real-world dynamics in Nasdaq as well, said Jimmy Seet, capital markets partner, PwC Singapore.

“While Nasdaq does not have a formal minimum market cap for analyst coverage, it’s common to see companies below US$1 billion struggle to attract consistent coverage,” he noted.

Charu Chanana, chief investment strategist at Saxo Bank Singapore, said that the scale of such companies would reduce the risk of them being thinly traded despite being listed on SGX and Nasdaq.

Analysts largely concur that companies that are likely to be interested in this dual-listing bridge would include Nasdaq-listed or Nasdaq-ready firms with international or Asian-focused growth strategies, including Asian technology and fintech companies with global ambitions.

“The bridge offers them simultaneous access to US capital and Singapore’s institutional investor base, while embedding them within the US innovation ecosystem of sector-focused investors and strategic partners,” said Drew & Napier’s Chong.

Enhancing resilience

Beyond capital access, the appeal of the bridge also lies in how it helps companies navigate a more splintered environment.

Some may seek geopolitical shelter amid the ongoing fragmentation. Singapore offers a neutral and credible base for companies to pursue growth while managing cross-border and market-access risk, pointed out Chong. This is particularly relevant for sectors exposed to tariffs, export controls or sanctions, where a dual listing could be a strategic hedge.

“By anchoring in Singapore while accessing Nasdaq, they reduce reliance on any single market and enhance their resilience to regulatory and geopolitical shocks,” she said.

Late-stage South-east Asian “unicorn-to-public” names looking for deeper US liquidity while maintaining a Singapore or Asia investor base appear primed for the dual-listing bridge, said Chanana. The investor demand for deep tech, biotech and healthtech on the Nasdaq will also be an attraction for such companies.

“A third sweet spot is artificial intelligence-era ‘picks-and-shovels’ infrastructure – data centres, software, cybersecurity – with naturally global customers and a cross-border equity story,” she added.

Chong noted that large regional champions would also be primed for the dual-listing bridge, referring to those that have proved their business models at home and are ready to scale globally. This would include companies from markets such as Indonesia which require deeper capital pools to fund regional or global expansion.

Companies seeking capital-intensive growth in infrastructure, technology or platform expansion would also be keen on this dual-listing bridge. This would allow companies to tap the scale and sophistication of the US markets for lower cost of capital, added Chong.

Ultimately, the success of the bridge hinges on whether it can translate issuer interest into sustained trading liquidity and market participation in Singapore.

Chan Yew Kiang, EY Asean IPO leader, said: “Should Singapore be successful in attracting more liquidity and activity in the stock market, it would certainly attract more Asia companies or those that are looking to expand their business in the region to list here.”