Guide to Singapore Listed Companies: What You Need to Know

Singapore is home to a vibrant stock market, making it a prime location for companies to list and raise capital. The Singapore Exchange (SGX) serves as the main platform for companies to go public and offers various advantages to both issuers and investors. If you are considering listing your company or investing in listed companies in Singapore, understanding the fundamentals is essential. This guide provides an overview of Singapore listed companies, their benefits, and key compliance requirements.

What is a Listed Company?

A listed company is a business entity whose shares are publicly traded on a stock exchange, such as the Singapore Exchange (SGX). These companies have undergone a rigorous process to meet regulatory and disclosure standards, making their shares available to the public for trading.

Benefits of Becoming a Listed Company in Singapore

1. Access to Capital

• Listing allows companies to raise funds by issuing shares to the public.
• Enables long-term growth and expansion plans.

2. Enhanced Credibility

• Listed companies gain greater visibility and credibility with investors, customers, and stakeholders.

3. Liquidity for Shares

• Shareholders can buy and sell shares easily, providing liquidity and flexibility.

4. Tax Benefits

• Singapore's attractive tax regime includes no capital gains tax, benefiting investors and listed companies alike.

5. Opportunities for Growth

• Listing provides access to institutional investors and global markets, boosting business opportunities.

Types of Listings on the Singapore Exchange (SGX)

1. Mainboard

• Designed for established companies with a proven track record.
• Minimum market capitalization of S$150 million for profitability-based listings.

2. Catalist

• Targeted at fast-growing small and medium enterprises (SMEs).
• No minimum market capitalization requirement but must be sponsored by an SGX-approved sponsor.

Eligibility Requirements for Listing on SGX

1. Mainboard Listing

• Profit-Based Criteria::
  Minimum pre-tax profit of S$30 million over the last three years.

• Market Capitalization Criteria:
  Minimum market capitalization of S$150 million.

2. Catalist Listing

• No profitability or market capitalization requirements.
• Must secure a sponsor to assess suitability for listing.

Common Requirements:

• Clear corporate structure and governance.
• Financial statements audited by an SGX-approved auditor.
• Adequate working capital to support operations post-listing.

Key Responsibilities of Singapore Listed Companies

1. Continuous Disclosure

• Provide timely and accurate information to investors.
• Announce material information through SGXNet, the exchange's disclosure platform.

2. Corporate Governance

• Adhere to the Singapore Code of Corporate Governance, ensuring transparency and accountability.

3. Financial Reporting

• Submit annual and quarterly financial statements in compliance with Singapore Financial Reporting Standards (SFRS).

4. Shareholder Engagement

• Conduct annual general meetings (AGMs) to keep shareholders informed and engaged.

Common Challenges for Listed Companies

1. Regulatory Compliance:
   • Meeting the stringent requirements of SGX and other governing bodies.
2. Increased Public Scrutiny:
   • Facing greater scrutiny from shareholders, analysts, and the public.
3. Cost of Listing:
   • Managing costs associated with listing, such as legal, auditing, and compliance fees.
4. Maintaining Shareholder Value:
   • Ensuring consistent performance to retain investor confidence.

How Apexia Corporate Advisory Can Assist

At Apexia Corporate Advisory, we provide comprehensive support to companies considering listing or already listed on SGX. Our services include:

1. Pre-IPO Advisory

• Assess your company's readiness for listing.
• Assist in meeting SGX's eligibility criteria and preparing required documentation.

2. Corporate Governance Support

• Develop and implement governance frameworks aligned with regulatory standards.

3. Compliance Management

• Ensure timely submission of financial reports and continuous disclosure obligations.

4. Financial Advisory

• Guide your company through capital structuring and fundraising activities.

5. Ongoing Support for Listed Companies

• Assist with shareholder communication, AGMs, and investor relations.

Conclusion

Becoming a listed company in Singapore offers significant opportunities for growth, credibility, and access to capital. However, the process requires careful planning and adherence to regulatory standards. Whether you are preparing to go public or need ongoing support as a listed company, Apexia Corporate Advisory is here to help. Contact us today for expert guidance and tailored solutions to achieve your listing goals!