SGX wants more tech startups to launch IPOs in Singapore

Singapore Exchange is aiming to make itself an attractive listing for technology firms to launch an initial public offering on.

Investors monitor stock market prices in Kuala Lumpur
Picture for representation Reuters

The local stock exchange inked a deal with Infocomm Media Development Authority (IMDA) to create a streamlined pathway for technology firms to leverage private and public capital markets in Singapore more efficiently for expansion.

With the signing of the memorandum of intent (MOI), SGX and IMDA aims to boost access for technology companies into the capital markets, catalyse more high-tech IPOs and increase Singapore's attractiveness as a venue for capital raising.

Under the MOI, SGX will tap the Accreditation@IMDA (A@IMDA) programme to identify and urge key parties to support said firms in their IPO venture including facilitating pre-IPO funding, advising on listing processes and preparing for the actual IPO listing.

This will in turn help lower the information barriers and costs for IMDA-accredited companies in the processes leading to IPO listing.

Minister for Communications and Information Dr Yaacob Ibrahim said the deal will foster ties and information sharing between financial and technology communities to enable investors to better understood and value tech firms.

"[The] collaboration between IMDA and SGX will provide high-growth Infocomm Media (ICM) companies access to capital markets, allowing them to leverage Singapore's well-developed financial ecosystem to support their growth and expansion plans. I encourage ICM companies with innovative products and services to set up their base of operations in Singapore so that they can take full advantage of these programmes and platforms," Ibrahim said.

Meanwhile, SGX CEO Loh Boon Chye noted that this partnership would galvanise more partners in the financial ecosystem to engage with the fast-growing and innovative companies.

IMDA Chief Executive Tat Kiat How agreed, saying there are boundless opportunities for the tech firms in the region to transform and digitalise.

"The partnership between SGX and IMDA is an important step in deepening the collaboration between the technology and financial ecosystems and enables both groups to benefit from this rapid growth. It also enables promising ICM companies to tap Singapore's capital markets to scale up to the next phase of their growth," he said.