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Listing on the Asian Gateway
Simon Lim
Head of Listings, South East Asia 20 September 2013
SGX The Asian Gateway SGX The Asian Gateway
Contents
1
Overview 1 02
Why List on SGX – Valuations 2 08
Why List on SGX – Access 3 11
Page
The Listing Choice in Asia
Why List on SGX – Support 4 16
Summary 5 21
SGX The Asian Gateway
1. Overview
Singapore & SGX
The Listing Choice in Asia 2
SGX The Asian Gateway SGX The Asian Gateway
Asia’s most competitive city in attracting businesses, efficiency
and promoting a clean environment
– World’s third-most competitive city after New York and London
amongst 120 cities
Home to global companies
– Asia Pacific headquarters to >1/3 of Fortune 500 companies
Wealth hub with largest institutional investor base in Asia
– >US$1.8 trillion assets under management
Trading centre for commodities
– World’s largest bunker port and 2nd largest container port
– 300 global trading companies
– 90 top global traders globally/regionally headquartered here
Singapore – A Global Financial Centre
The Listing Choice in Asia 3
World’s Best Place for Doing Business
Source: Ranked by World Bank as “World’s best place for doing business”, according to Report on “Benchmarking global
city competitiveness” from the Economist Intelligence Unit Limited 2012, Commissioned by Citigroup Inc
SGX The Asian Gateway SGX The Asian Gateway
Non-Singapore
38%
Singapore
62%
UK 79%
Non-UK 21%
SGX – A Truly International Exchange
4
London Stock Exchange New York Stock Exchange Hong Kong Stock Exchange Tokyo Stock Exchange
Singapore Exchange
Southeast Asia
20%
India
2%
Greater China
67%
Japan & Korea, 4%
Australia, 3%
Europe, 3%
US, 1%
Country of Origin for Overseas Companies
Source: World Federation of Exchanges (Jul 2013) & Singapore Exchange (Aug 2013)
782 Listed Companies,
Market Capitalisation
US$725 billion
US 78%
Non-US 22%
China 94%
Non- China
6%
Japan 99%
Non-Japan 1%
SGX The Asian Gateway SGX The Asian Gateway
SGX Securities Markets
The Listing Choice in Asia 5
Exchange-regulated
& supervised
Exchange-regulated,
Sponsor-supervised
Established Companies Fast-Growing Companies
Exchange Sponsors
Established branding
Access to a wider range of
institutional investors
More product types
Faster time to market
Easier corporate actions
Regulatory Approach
Target Companies
IPO Review & Post-IPO Supervision
Key Benefits
Mainboard Catalist
SGX The Asian Gateway SGX The Asian Gateway
Quantitative Criteria
6
(a) Profitable in latest financial year with operating track record of 3 years and
market capitalisation of at least S$150 mil; OR
(b) Positive operating revenue in the latest financial year and a market
capitalisation of at least S$300 mil; OR
(c) Minimum pre-tax profit of at least S$30 mil for latest financial year and has
operating track record for 3 years
(positive cash flow required from operating activities)
No quantitative requirement (Sponsor prescribes in-house criteria)
Mainboard
Quantitative
Criteria
Catalist
Quantitative
Criteria
The Listing Choice in Asia
SGX The Asian Gateway
2. Why List on SGX
Strong Valuations & Liquidity, Access and Support
The Listing Choice in Asia 7
SGX The Asian Gateway
High Valuations
Strong Investor Interest
The Listing Choice in Asia 8
SGX The Asian Gateway SGX The Asian Gateway
23 out of 26 IPOs in 2012 opened up from
their offer price, with opening premiums
ranging between 4% and 55%
These 26 IPOs closed with a weighted
average return of 12% on their first trading day
Post IPO, the weighted average return to-date
stands at a healthy 23%
As an IPO destination in 2012, SGX offered
one of the world’s best performing and
stable stock markets, with the STI gaining
20% in 2012 of other international indices. The
STI is also the least volatile over the past year,
compared to the Nikkei 225, Hang Seng Index,
and other peers.
Strong SGX IPO & Market Performance in 2012
9
Source: Bloomberg & SGX (Dec 2012)
The Listing Choice in Asia
SGX The Asian Gateway SGX The Asian Gateway
18 out of 21 SGX listings in 2013
opened up from their offer price, with
opening premiums of 1% to 53%
These 21 listings closed with a
weighted average return of 7% on
their first trading day
Weighted average return to-date
stands at a positive 4% despite
choppy markets
SGX is 4th Largest Exchange for IPO in 1Q2013
10
Source: Wall Street Journal (18th Mar 2013), Bloomberg & SGX
0 2 4 6
Moscow
London
Hong Kong
Iraq
Mexico
Nasdaq
Singapore
Frankfurt
Tokyo
New York
Glo
bal N
ew
Lis
tin
gs b
y V
olu
me
by E
xc
han
ge
(U
S$
B)
SGX The Asian Gateway
Access
Wealth Management Hub of Asia
The Listing Choice in Asia 11
SGX The Asian Gateway SGX The Asian Gateway
Over US$1.8 trillion AUM1, while AUM in Hong Kong is about US$1.3 trillion2
– Institutional Funds >US$1,000 billion
– Private Wealth Management >US$400 billion
– Temasek and GIC >US$250 billion
Over 2,500 investment professionals, over 4,000 registered funds and over 100 fund
management companies
One of the most distribution-friendly markets in Asia3
– Third-highest income per capita in the world in terms of purchasing power parity
– First port of call for Asian and Middle Eastern investors due to low taxes, ease of capital
flows and stable political environment
World's largest wealth management centre by 20134
Singapore: Wealth Management Hub of Asia
12
Sources:
1 MAS 2011 Survey report, industry sources, Temasek and GIC annual reports 2012
2 HK SFC 2011 Survey report
3 Financial Times, dated 21 Oct 2012
4 PwC Global Private Banking and Wealth Management Survey 2011
The Listing Choice in Asia
SGX The Asian Gateway SGX The Asian Gateway
During the Global Financial Crisis in 2009, SGX listed companies raised more than
US$15 billion to strengthen their balance sheets
Fund Raising Proven in Bull & Bear Markets
The Listing Choice in Asia 13
0.3 1.1 1.1
2.2 3.9
5.3 5.7
1.4 2.3
5.0
8.3
1.8 2.8
1.4 1.4 1.3
1.8
2.7
2.8
10.5
2.9
15.2
3.5
5.0
2.9
2.9
0
2
4
6
8
10
12
14
16
18
Fu
nd
s R
ais
ed
(U
S$
billio
n)
Secondary Fundraising
IPO Fundraising
SGX The Asian Gateway SGX The Asian Gateway
Company
Amount
Raised
(US$m)
Public
Offer Size
(US$m)
Retail
(Public Offer
only)
Subscription
Rate
Retail
Subscription
Amount
(US$m)
HUTCHINSON PORT
HOLDINGS TRUST 5,500 187 2x 281
GLOBAL LOGISTIC
PROPERTIES * 2,111 154 11x 1,689
MAPLETREE INDUSTRIAL
TRUST * 427 76 28x 2,108
TIGER AIRWAYS HOLDINGS
LIMITED 198 13 23x 306
BUMITAMA AGRI LIMITED 176 9 40x 367
KRISENERGY # 241 10 23x 220
SPH REIT # 440 260 25x 6,508
OUE HOSPITALITY TRUST # 476 303 19x 5,760
Active Retail Investors’ Participation
The Listing Choice in Asia 14
Note: * Both of these listed during the same week in Oct 2010
# All of these listed during the same week in Jul 2013
Source: Company announcements
Singapore retail investors can subscribe for IPOs via 2,000 ATMs
SGX The Asian Gateway SGX The Asian Gateway
Asian Investors in Singapore
The Listing Choice in Asia 15
Note: Bosera is the discretionary manager of certain equity portfolio of the National Council for Social Security Fund of the PRC
China:
– QDII funds can invest in Singapore given MOU between MAS and CSRC for examples: ChinaAMC
Global Selective Fund, China International Fund Management Co Ltd and ICBC Credit Suisse Asset
Management Co., Ltd
– Prominent Chinese investors in Singapore include Alibaba and Bosera, China Investment Corporation,
Sinochem, Petrochina and Huaneng
– Chinese citizen may remit up to US$50,000 overseas annually, per State Administration of Foreign
Exchange rules and may freely open trading and banking accounts in Singapore
– >25,000 Chinese citizens have custodian accounts with our depository
South & Southeast Asia:
– 195,000 Southeast Asia (Malaysian, Indonesian, Thai, Filipino, Myanmar, etc) citizens have custodian
accounts with our depository
– 13,000 Indian citizens have custodian accounts with our depository
– Indian resident investors are allowed to invest up to US$200,000 outside India
SGX The Asian Gateway
Support
Efficiency to Meet The Market’s Needs
The Listing Choice in Asia 16
SGX The Asian Gateway SGX The Asian Gateway
Efficient application process allows issuers to catch window of opportunity
Fast Time-to-Market
The Listing Choice in Asia 17
Trading
Commences
Preparation to
Apply +
Pre-consultation
SGX & MAS
Concurrent Review
6 – 8 weeks 2 weeks 1 - 2 weeks
Lodgment and
Public Exposure
on OPERA
Registration
& Launch
Mainboard Timeline
Trading
Commences Notification to SGX
4 weeks 2 weeks 1 - 2 weeks
Lodgment and
Public Exposure
on Catalodge
Registration
& Launch
Catalist Timeline
Preparation to
Apply
SGX The Asian Gateway SGX The Asian Gateway
Fast time-to-market: Review process takes 4-5 weeks only
No minimum quantitative admission criteria
Easier subsequent fund raising
Easier acquisitions & disposals
Lower minimum number of shareholders required
Lower requirement for post-invitation share capital in public
hands
Fewer independent directors required
Catalist – for Fast Growing Companies
The Listing Choice in Asia 18
SGX The Asian Gateway SGX The Asian Gateway
Short review process: 4-8 weeks
No restrictions on cornerstone and pre-IPO investors
partaking in public offer
No minimum profit requirement
No restrictions on paid-up capital
Minimum public float of between 12-25%
For secondary fund raising, issuers may issue up to 50% of
issued capital under the share issue mandate
Prospectus only need be in English
Market Oriented Regulatory Framework
The Listing Choice in Asia 19
SGX The Asian Gateway SGX The Asian Gateway
Supporting and Partnering After Listing – SGX Corporate Services
20
BOARD EXCELLENCE
Board Effectiveness Service
(Heidrick & Struggles)
Board Management Tool
(NASDAQ – Directors Desk)
Board D&O Survey
(AON)
Corporate Governance Education
Programs
(Singapore Institute of Directors)
CORPORATE ACTIONS
Dividend Distribution
(CDP)
Capital Raising
(CDP - Rights issue/bonus issue/stock
splits/share buyback/private placement)
Shareholding Services
(CDP)
Proxy and Poll Voting
(Broadridge)
INVESTOR OUTREACH
Company Research
(S&P - SERI Plus)
Corporate Intelligence
(NASDAQ- CI)
Investor Relations Website Hosting
(NASDAQ – Web360)
Media Solutions
(NASDAQ - Audio/Video;
Xpress Holdings – Print/Bind)
Corporate News Distribution
(NASDAQ – GlobeNewsWire)
Investor Road Shows
(SGX, UBS & DBS)
Benefit from a suite of product and services to help you raise your profile and increase investor interest through
investors relations, research, local investor seminars, and overseas road-shows
The Listing Choice in Asia
SGX The Asian Gateway SGX The Asian Gateway The Listing Choice in Asia 21
Why SGX – Summary
Tap into liquidity provided by more than US$1.8trillion of assets under management in Singapore 1
Access a wide global investor base, including Chinese retail & institutions 2
Strong valuations, proven especially for sectors where peers listed on SGX enjoy rich valuation 3
Capture opportunities with fast time-to-market and market-oriented regulatory framework 4
Proactive support from SGX to increase profiling and liquidity after listing 5
The Listing Choice in Asia 21
Access through the wealth management hub of Asia
Strong valuations and liquidity
Efficiency to meet your needs
SGX The Asian Gateway SGX The Asian Gateway
This presentation is being made available to certain authorized recipients for their general information only.
While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of
any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such
information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The
information in this presentation is subject to change without notice.
Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility
and liability arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof.
© SGX Ltd, November 2010
www.sgx.com
Thank You
22
Singapore Exchange • London • Tokyo • Beijing
2 Shenton Way, #19-00 SGX Centre 1, Singapore 068804
Main: (65) 6236 8888 Fax: (65) 6535 6994
The Listing Choice in Asia
For more information, please contact:
Mr Simon Lim, Head of Listings, South East Asia
Email: [email protected]
DID: +65 6236 8553
Ms Teng Yi Ling, Associate Director (Singapore & South East Asia)
Email: [email protected]
DID: +65 6236 5191