SGX clarifies secondary listing framework

It is allowing dual-class share firms to have secondary listing.

Companies with dual-class share structure can now seek a secondary listing on Singapore Exchange (SGX).

According to SGX, the secondary listing framework differentiates companies into two groups based on their home exchanges.

The group clarified that it does not impose additional post-listing conditions for companies that are listed on any of the 22 markets the international index-providers FTSE and MSCI classify as “developed markets”. It does require companies make continuous disclosures via SGXNet of all announcements made to the home exchange. 

More so, SGX said these companies must also maintain their primary listing on the home exchange. The classification considers a jurisdiction’s legal, regulatory and enforcement framework. The home exchange of each company will maintain primary regulatory oversight of the issuer.

Additionally, all companies applying for a secondary listing are subject to the listings review process and must satisfy our suitability criteria. Initial secondary listing applications from DCS companies will be referred to the independent Listings Advisory Committee.

"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. Should a DCS company secondary-list on SGX, it could enhance overall market knowledge and familiarity with the risks and benefits of DCS companies,” said SGX CEO Loh Boon Chye.