SGX needs more than dual-class shares to woo tech companies

AS dual-class share structures appear to be one step closer to reality in Singapore - despite all the arguments against such a move - one key question is whether it will lead the Singapore Exchange to becoming a major venue for international listings, in particular for tech initial public offerings (IPOs), a seemingly tacit objective of the Singapore bourse operator.

Admittedly, such a share structure will tempt tech companies - as it did Facebook and Alibaba - where founders, even as minority shareholders, can have majority voting rights, retain control of the company, not worry about dilution and focus on making strategic long-term investments. Growth sectors in particular (e-commerce, social media, on-demand services and the like) are where founders play a critical role in the company's continued success.

But if the ambition is to make SGX a major venue for international listings and to attract exceptional tech companies, something bigger than multiple share classes has to happen.