The Monetary Authority of Singapore (MAS) has on Thursday issued its response to the public consultation on proposed amendments to the Securities and Futures Act 2001 (SFA) to facilitate dual listing arrangements on the Singapore Exchange (SGX).
The proposed regulatory framework1 supports the implementation of the Global Listing Board (GLB), a partnership by the SGX and Nasdaq, and facilitates future similar collaborations, MAS said in a statement.
Respondents to the consultation and market participants expressed strong support for the objective of minimizing friction and streamlining the initial public offering (IPO) journey for dual listings.
Respondents further suggested additional ways to harmonize regulatory requirements, primarily in the areas of investor outreach efforts, prospectus registration timing and process, and facilitating post-listing activities in Singapore.
Where feasible, MAS has taken in these suggestions.
Under a set of harmonized rules and processes, GLB issuers may prepare a single set of offering documents to simultaneously list on both SGX and Nasdaq.
They will also be allowed to conduct pre-marketing outreach with accredited and institutional investors in Singapore prior to the lodgement of the preliminary prospectus.
Early engagement of these investors will allow GLB issuers to gauge market interest of a potential listing at an earlier stage in the IPO process, subject to safeguards.
The proposed regulatory framework will also permit safe harbors for GLB issuers that facilitate the publishing of forward-looking statements, the undertaking of share repurchases and the execution of pre-determined trades.
It will enable the safe harbors to be used as a defense to specified market misconduct provisions under the SFA for trading activities in both markets.
Lastly, respondents supported the proposed amendments in the consultation paper that will apply to all offers that are made in conjunction with a listing on SGX, including those on the GLB. MAS will proceed with these amendments.
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