General Announcement::News release: SGX mandates minimum allocation of Mainboard IPOs to retail investors

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
08-Mar-2017 08:07:21
Status
New
Announcement Sub Title
News release: SGX mandates minimum allocation of Mainboard IPOs to retail investors
Announcement Reference
SG170308OTHR96EK
Submitted By (Co./ Ind. Name)
Ho Lily
Designation
AVP, Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) will mandate all Mainboard IPO companies to allocate to retail investors, at least 5%, or S$50 million, whichever is lower, of their offer size.

The introduction of the minimum IPO allocation is aimed at facilitating greater retail participation in Singapore's equities market. The new rules on the minimum allocation are effective 2 May 2017.

"Retail investors are important participants in the Singapore markets and giving them access to at least 5% of each Mainboard IPO will encourage more to consider equity investing. If market conditions permit, we encourage companies to make available more shares than the floor to retail investors," said Chew Sutat, Executive Vice President and Head of Equities and Fixed Income, SGX.

"Ensuring a minimum allocation to retail investors for every Mainboard IPO is a step in the right direction. This initiative provides individuals especially new-comers with more choice when considering ways to diversify their savings," said David Gerald, CEO and President of the Securities Investors Association (Singapore).

SGX received formal feedback from 20 respondents via the public consultation which ended in March 2016. Informal engagements with stakeholders were also held to gather feedback.

"We recognise that market forces are dynamic and will continue to monitor the public subscription trends of IPOs to ensure that the minimum allocation amounts are appropriate for the Singapore market," Mr Chew said.

-End-

Attachments

20170308_SGX_mandates_minimum_allocation_of_Mainboard_IPOs_to_retail_investors.pdf
Total size =280K