General Announcement::SGX proposes introducing 10% allocation of Mainboard IPO shares for 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
26-Feb-2016 17:14:47
Status
New
Announcement Sub Title
SGX proposes introducing 10% allocation of Mainboard IPO shares for retail investors
Announcement Reference
SG160226OTHR7A01
Submitted By (Co./ Ind. Name)
Carolyn Lim
Designation
VP, Marketing & Comms
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) is proposing that Mainboard companies allocate to retail investors a minimum 10% of shares in their initial public offers (IPOs), up to a maximum of S$100 million.

This is the second consultation on the introduction of a mandated minimum IPO allocation to retail investors. The first consultation in 2012 proposed a 5% retail allocation.

The increase in the proposed retail IPO allocation percentage follows positive feedback for a minimum allocation of shares in IPOs to retail investors from the 2012 consultation. In addition, over 90% of IPOs which occurred in 2010 to 2015 had retail investor application rates which were greater than 10% of the total offer size, indicating retail demand for IPO shares.

SGX s proposal for a minimum 10% retail allocation for shares of Mainboard IPOs is aimed at giving individuals more investing opportunities in the Singapore equities market. While market conditions may have been uncertain of late, this initiative is for the long term and is part of overall enhancements to the Singapore stock market, said Loh Boon Chye, CEO of SGX.

The consultation paper is open for comments till 24 March 2016. Responses can be sent via the following ways:

Email listingrules@sgx.com

Mail Singapore Exchange Limited
11 North Buona Vista Drive
#06-07, The Metropolis Tower 2
Singapore 138589
Attention: Listing Policy & Product Admission


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Attachments

20160226_SGX_proposes_introducing_10_pct_allocation_of_Mainboard_IPO_shares_for_retail_investors.pdf
Total size =283K