SGX seeks to tweak listing rules for mineral, oil and gas companies

THE Singapore Exchange (SGX) has launched a public consultation for a number of changes to listing rules for mineral, oil and gas (MOG) companies here.

This is so that the listing rules will "remain aligned with industry developments", the SGX said in a statement on Wednesday.

To strengthen the listing profiles, for example, the SGX is proposing that Mainboard MOG listing aspirants should establish at least "reserves", while Catalist listing aspirants should establish at least "inferred resources" for minerals assets and "contingent resources" for oil and gas assets.

Companies could also be required to demonstrate plans to obtain the necessary approvals to proceed with development, in line with industry terminology, rather than to establish "exploration and exploitation rights".

The suggested changes were made in consultation with a working group set up in 2015 that comprised MOG specialists, including technical experts, corporate finance advisers and senior executives from SGX-listed issuers.

If adopted, the SGX expects to implement the listing rule changes this year.

Other changes include having a qualified person to provide the basis for expecting all required approvals will be granted and the company's intention to proceed with development within a reasonable timeframe.

The SGX is also seeking to introduce a simple Qualified Person's Report (QPR) for certain events, in place of a full QPR, to make the content more readable for investors.

This summary QPR will contain key information relating to updates of the company's "resources" and "reserves" and is required for certain events relating to annual updates and significant changes in the company asset.

Its content must also comply with a portion of the Australasian code for reporting of exploration results, mineral resources and ore reserves for minerals companies and key streamlined requirements set out in the SGX Practice Notes for oil and gas companies.

"The proposed changes to the MOG listing rules will enable companies at different stages of development to raise funds via the board that is more appropriate to them," said SGX regulation chief executive Tan Boon Gin. "Investors will benefit from the wider choice of MOG companies and the improved readability of the reports."

The public has up till Feb 28 to submit feedback on the proposed listing rule changes.