Singapore Exchange allows companies to list with dual-class shares

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In a bid to attract more listings, Singapore Exchange (SGX) said it will allow companies to list with dual-class shares later this year.

The first listing of a company with a dual-class share structure could come soon after June, SGX Chief Executive Officer Loh Boon Chye said at a results briefing on Friday.

"Some companies might need a capital structure that supports the rapid scaling up of their business. Dual-class shares are one way to do so, but not the only way," he said.

Loh said that the implementation of dual-class shares is in line with the Committee on the Future Economy report on the scaling up of new-economy enterprises.

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The Monetary Authority of Singapore (MAS) supported SGX's decision to allow dual-class shares.

"MAS will review the safeguards that SGX will be proposing to mitigate these risks, as well as SGX's education initiatives to help investors better understand the unique risks of dual-class shares structures," the regulator said in a statement said on Friday.

The dual-class share announcement comes after the exchange announced quarterly results on the same day.

SGX reported unchanged second-quarter net profit, with revenues from its largest equities and fixed income division posting a drop in the quarter.

Revenue from the bourse's equities and fixed income division - which contributes nearly half to the overall revenue - declined 4 percent to S$97.5 million in the period.

This article was first published on January 22, 2018