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Registration with the Singapore Stock Market

Updated on Thursday 16th March 2017

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Singapore Exchange Limited (SGX) is an investment holding company that provides trading services. The Singapore Exchange Limited is a member of the World Federation of Exchange and is also a member of the Asian and Oceania Stock Exchanges Federation.

Listing on the Singapore Stock Exchange is less expensive compared to stock exchanges in other countries, but it depends very much on the amount to be raised.

Our company formation specialists in Singapore can offer information on the listing requirements imposed by the SGX.

Preparing a Singapore company for registration with the SGX

Registration with the Singapore Stock Exchange is possible for any public company. Private limited liability companies are allowed to be register with the SGX after they change their status. This will imply an increase of the share capital. Our Singapore company formation agents can assist with these two procedures.

In order to be listed, a company must also have an appropriate management structure which refers to qualified directors. Additionally, the company must put in place a solid corporate governance code.

The last step to register a Singapore company with the SGX is to prepare the prospectus which will be submitted for approval. The prospectus must contain the following information:

  • -       the assets of the company;
  • -       the liabilities of the company;
  • -       the financial reports of the company;
  • -       the profits and losses of the company;
  • -       the rights and the liabilities related to the shares the company will trade.

Our local agents can also assist foreign investors seeking to open a company in Singapore with the purpose of listing it on the SGX.

How can a company be listed on the Singapore Stock Exchange?

In order for a company to be listed on the Singapore Exchange Securities’ board it must meet one of the following requirements:

  •          - the consolidated pre-tax profit must be at least 7.5 million $S during the last three years and a minimum pre-tax profit of at least 1 million $S for every year,
  •          - the cumulative consolidated pre-tax profit must be at least 10 million $S during the last one or two years,
  •          - a minimum market capitalization of 80 million $S considering the issue price and post-invitation issued share capital.

Based on the first and second requirements a Singapore company that will be listed on the SGX must have conducted the same business and must have had the same management during the period the profit was made. When calculating the profits, the company must exclude non-recurrent and extraordinary income.

The Singapore Stock Exchange also requires company’s directors to be experienced in managing the business in order to consider whether the company should or should not be listed. The Singapore company’s board must also be comprised of a minimum two non-executive and independent directors.

How to open a brokerage account with the Singapore Stock Exchange?

In order to trade on the SGX, a Singapore company must open a brokerage account. The brokerage account on the SGX can be open by submitting the following documents depending on the trading activity to be undertaken:

  •          - an application form for opening a trading account,
  •          - an application form for opening a securities account,
  •          - an application form for companies with both trading and securities account.

It takes about two weeks for a brokerage account application to be processed.

Why list a company on the Singapore Stock Exchange?

Singapore is one of the most stable countries in Asia and the SGX is one of the world’s most innovative stock markets as it allows for companies in all industries to trade. Among these, the SGX issued specific regulations and a secondary board for innovative and life sciences companies which seek to increase their capital. Also, the SGX is suitable for dividend stock investments. When adding the lower listing fees compared to other Asian jurisdictions, the SGX is the most appropriate choice for registration.

If you want to list a company on the SGX or open a brokerage account, you can contact our company registration consultants in Singapore.

 

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