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SGX to allow dual-class structures from developed markets for secondary listings
COMPANIES with dual-class share (DCS) structures that are primary listed in developed markets will be allowed to hold a secondary listing in Singapore, the Singapore Exchange (SGX) said on Friday.
The announcement was a clarification of the exchange's existing secondary listing framework in response to queries during SGX's public consultation on whether to allow dual-class shares on the primary market.
The secondary listing framework adopts the "developed" classification by index providers FTSE and MSCI, recognising 22 markets in that category. A company with a primary listing on any of those markets will not face additional post-listing conditions except a requirement to make continuous disclosures through SGX for all announcements made on their home exchange. The companies must also maintain their primary listing on the home exchange.
All companies seeking a secondary listing in Singapore will, however, still be subject to SGX's listings review process. Secondary listing applications from companies with DCS structures will be referred to the independent Listings Advisory Committee, SGX said.
"The secondary listing of companies, including DCS companies, in Singapore provides investors with more choice and enables these shares to be traded during the Asian time zone," SGX CEO Loh Boon Chye said in a statement. "Should a DCS company secondary-list on SGX, it could enhance overall market knowledge and familiarity with the risks and benefits of DCS companies."
SGX Regulation chief executive Tan Boon Gin said the clarification on the secondary listing avenue does not presume that SGX will adopt a primary DCS listing framework. SGX is still evaluating feedback and hopes to provide an update before year-end, he said.