Information on IPO in

Singapore
• PROFILE OF SINGAPORE EXCHANGE

• LISTING REQUIREMENTS
 A Pan-Asian Market
Number of Listings

84
18.3%

Mainboard
SESDAQ

374
81.7%

As at end Sep 2000

 Foreign Enterprises
Share of Capitalisation

130.55
32.2%
Singapore
Foreign

274.67
67.8%

As at end Sep 2000

Sectoral Classification of Companies listed on SGX
Services Agriculture
8% 1%
Multi-Industry
Hotels/
4%
Restaurants
4%
Properties
6%
Construction Manufacturing
8% 38%

Finance
11%

Transport/Storage/Co
mmunication Commerce Electricity/Gas/
6% 14% Water
0%

The manufacturing sector includes the electronics sector

 A Pan-Asian Market
Number of 1999 IPOs

11
21.6%
Singapore
Foreign

40
78.4%

For year ended Dec 1999

 A Pan-Asian Market
1999 IPO Proceeds

Singapore
Foreign

S$1,264.44
37.2%

S$2,136.17
62.8%

For year ended Dec 1999

 Year 2000 Foreign Listings
• Philippines • Hong Kong
– Ionics – Kingboard
– I-Comm Technology
• PRC – Kyosha
– Cytech Software – Lafe Technology
• Malaysia – Giant Wireless
– Nucleus – North 22
– FDS
– PK Tech
– Jadason
• New Zealand
- Brierley • United States
• Australia – Reed Group
– Easycall
 Funds Raised By Companies listed in 2000
Funds Raised
(S$)
200 - 600 mil 4

100 - 200 mil 2

20 - 100 mil 25

14 - 20 mil 9

10 - 14 mil 10

6 - 10 mil 12

2 - 6 mil 9

0 5 10 15 20 25
Number of
companies
Market Capitalisation of Companies listed in 2000
Market Cap (S$)
10-30 bil 3

2-10 bil 9

100 mil-2 bil 14

20-100 mil 41

14 - 20 mil 4

0 10 20 30 40 50
Number of
 50.0%
100.0%
150.0%

0.0%
Jan-97
Feb-97
Mar-97
Apr-97
May-97
Jun-97
Jul-97
Aug-97
Sep-97
Oct-97
Nov-97
Dec-97
Jan-98
Feb-98
Mar-98
Apr-98
May-98
Jun-98
Jul-98
Aug-98
Sep-98
Oct-98
Nov-98
Dec-98
Jan-99
Feb-99
Mar-99
Apr-99
Dollar Turnover/Market Cap

May-99
Jun-99
Turnover Velocity

Jul-99
Aug-99
Sep-99
Oct-99
Nov-99
KLSE
Tokyo
Australia

Dec-99
Singapore
Hong Kong

Jan-00
Feb-00
Source: Federation Internationale Des Bourses De Valeurs

Mar-00
Apr-00
May-00
Ease & Efficiency of Trading
• Overseas investors can trade SGX listed
shares through the Internet

• Announcements by listed companies are

available real time on the SGX website

• A T+3 settlement period for trades done

 MEASURES TO ATTRACT
GLOBAL PARTICIPATION
• Establishment of an electronic link with Australian
Stock Exchange to cross trade SGX and Australian
listed stocks

• Joint Venture with Amex to trade Amex listed

exchange traded funds on SGX

• MOU with NSE and IISL to trade futures

contracts based on S&P CNX Nifty Index
 MEASURES TO ATTRACT
GLOBAL PARTICIPATION
• July 2000 :
- Opened the membership for new clearing
members to perform trading & clearing services

- Allow dual membership of both securities &

derivatives markets

• October 2000: Brokerage rates are now freely

negotiable
Flexible Rules…
 Accounting Standards
• Singapore Statement of Accounting Standards

• International Accounting Standards

• US GAAP
 Domicile & Base of Operations
• Free choice of domicile of listed company
– Eg. Bermuda … [Non exhaustive]

• No need for operations in Singapore

• Two independent directors, one resident in
Singapore
 Choice of Currency
• Free choice of trading currency.
Some of the more popular choices among foreign companies:
– S$
– US$
– HK$ .. (non-exhaustive)
• Choice of functional and/or reporting
currency:
– S$
– US$
– Rupee .. (non-exhaustive)
 Investor Confidence

• International standard of disclosure

and corporate governance
• Well regulated financial
intermediaries
• Sound financial system
 Resilience Index
‘Asian economies’ vulnerability to a US slowing

1.2
1
0.8
0.6
0.4
0.2
0
ia

an

a
g

nd
na
ea
e

ne
a
on

si
or

di
s

iw

la
hi
or

hi
ne
ay

In
ap

ai

ip
C
K

Ta

do
al
ng

Th

ill
on

In
Si

Ph
H

Source: SocGen Securities Research (May 2000)

Ease of Access to Capital Market
 Availability of Funds
• Strong presence of foreign & local fund
managers
(664 fund managers & 249 investment analysts)
• Total funds managed (End of 1999) =S$246.2
billion
• Venture Capital Funds (1999)
Raised = $1.4 billion
Managed = $10.2 billion
• PROFILE OF SINGAPORE EXCHANGE

• LISTING REQUIREMENTS
SGX-Mainboard Listing Criteria
Alternative 1 Alternative 2 Alternative 3

Pre-tax profit S$7.5m over S$10 m in 1 Nil

3 years; or 2 years
S$1 m per
year
Market Cap Nil Nil S$80m

Shareholding 25% (10% to 25% if Market Cap

spread >S$300m) held by 1000 shareholders
Primary listing: waiver from continuing listing obligations
if also listed on a recognised international foreign exchange
 Moratorium (Lock-up)
• Vendor share sales allowed at IPO

Promoters:
- Controlling shareholders and their associates
- Executive directors who own 5% or more upon listing
 Why list overseas?
•Need global currency for overseas
expansions or acquisitions
•Allows foreigners to invest in your
shares
•Ability to grant employee share options
to employees abroad
•Attract funds from Non-Resident
Indians
•Raise profile of company abroad
 Cost of Listing on SGX
• Initial Listings Fees: maximum of US$11,700

• Annual Listing Fees: maximum of US$1,170

• Generally Total Cost of Listing = 5% of proceeds

raised
 Stock Exchange Profile

Singapore Exchange offers…

• A Pan-Asian market
• Well regulated, stable and transparent
• Access to liquidity & capital
• Accessible market & flexible rules
• Low issuance cost
...In comparison, proportion of foreign
companies listed on HKSE
Foreign
2%

D ome stic
Fore ign

Domestic
98%

As at end Aug 2000

 Rule Advantages..

• Comprehensive listing criteria

• Flexible rules
• Equal treatment with local companies
• Choice of listing currency
Flexible Listings Options
 SGX Then NASDAQ/
NASDAQ Then SGX
• List on SGX to raise capital to build out
business model in Asia

• Enable foreign investors to invest in your

shares round the clock

• Access investors both in US and Asia in

two steps to enhance fund raising
Simultaneous SGX & NASDAQ

• Business model sufficiently developed for

US market
• Obtain US valuation, access liquidity both in
US and Asia
• Avoid becoming orphan stock on NASDAQ
• Lower listing cost- one prospectus for both
=> Access investors simultaneously in US and
Asia to enhance liquidity, valuation and
minimise listing cost
Share Price Performance on NASDAQ vs SGX
35
Creative NASDAQ price ST Ass Nasdaq price CSM NASDAQ price

30 Creative SGX price ST Ass SGX price CSM SGX price

25
Share Price (US$)

20

15

10

0
Aug 1999

Nov 1999

Aug 2000
Sep 1999

Oct 1999

Apr 2000

Jul 2000
Dec 1999

Jan 2000

Feb 2000

June 2000
May 2000
Mar 2000
CSM Volume Traded on NASDAQ vs SGX
(adjusted for the difference in number of shares offered in the 2 markets)

50
CSM NASDAQ vol
40 CSM SGX vol
Volume Traded

30
Millions

20

10

0
Feb 00

Jun 00
Dec 99

Jan 00

Jul 00

Aug 00
Apr 00

May 00
Mar 00
Nov 99

Total invitation: 250 mil shares

US & International offering : 225 mil shares
Singapore offering : 25 mil shares (10% of total
ST Assembly Volume Traded on NASDAQ vs
SGX
(adjusted for the difference in number of shares offered in the 2 markets)
80
ST Ass NASDAQ vol
70
ST Ass SGX vol
60
Volume Traded

50
Millions

40

30

20

10

0
Jan 00 Feb 00 Mar 00 Apr 00 May 00 Jun 00 Jul 00 Aug 00

Total invitation size : 170 mil shares

US & international offering : 153 mil shares
Singapore offering : 17 mil shares (10% of total
invitation)
Thank You

SGX website: www.sgx.com