Listing on the Stock Exchange in Singapore

Private companies in Singapore are allowed to list their shares on the Stock Exchange. Listing on the Stock Exchange in Singapore (SGX) is always voluntary. While voluntary floating happens when the company’s shareholders decide to list their shares through an initial public offering (IPO), the involuntary floating happens once the company has developed a lot and it no longer satisfies the criteria to be a private entity. One of these criteria is reaching a number of more than 50 shareholders.

Our lawyers in Singapore can provide with more information about the involuntary listing on the SGX.

Requirements to list a company on the Singapore Stock Exchange

In the case of voluntary listings, Singapore companies must fulfill certain conditions. These conditions depend on whether the entity wants to trade its shares on the mainboard of the SGX or on secondary markets. In order to make an IPO, the Singapore company must:

• –          have a consolidated pre-tax profit of at least 10 million SGD for the latest financial year and an operating track record of at least three years;
• –          alternatively, be profitable with a market capitalisation of at least 150 million SGD, or have operating revenue and a market capitalisation of at least 300 million SGD.

Companies incorporated for less than three years can qualify under the revenue test (operating revenue and a market capitalisation of at least 300 million SGD). Also, all companies no matter their year of registration must have carried out the same operations under the same management team for the whole period.

Considering additional conditions regarding the management of the company are required, you can refer to our Singapore lawyers for complete information about the SGX floating criteria.

Floating regulations for Singapore companies

Companies wanting to list their shares on the mainboard of the Singapore Stock Exchange must abide by the following rules:

• –          if the market capitalisation is below 300 million SGD, at least 25% of the shares or a higher percentage must be held by at least 500 public shareholders;
• –          if the market capitalisation is between 300 and 400 million SGD, at least 20% (15% up to 1 billion SGD and 12% above) of the shares must be held by at least 500 public shareholders.

Companies wanting to float their shares on the secondary market of the SGX, must list at least 15% of them to a minimum number of 200 shareholders.

Recently, the SGX proposed changes to the listing requirements, which is why for complete information about floating conditions we invite you to contact our law firm in Singapore.