Mr J Y Pillay, SGX Chairman,
Ladies and gentlemen,
First, I want to say that it is an honour to join Mr Pillay at this launch of SGX’s New Board.
As I see it, the New Board is a win-win formula for SMEs, the corporate finance sector, the Singapore investors and equity market.
Entrepreneurs will benefit because the New Board will make it easier and faster for growth companies to tap the investment market for additional funds. Currently, the processing of IPO’s for SESDAQ, from the submission of application to launch, takes 12 to 17 weeks.
A long approval process sometimes result in missed opportunities. Under the listing rules of the New Board, however, the process will be reduced to about six weeks.
The New Board will benefit members of the investment banking community who will be able to play a more pro-active role in the progressive growth and development of their SME customers through the new sponsorship concept. Sponsors will have increased responsibility and accountability over the listed SMEs under their wings. But I believe that this will also create a closer and longer-term partnership between the sponsor and the listed company.
No less important, SGX’s New Board should attract growing enterprises in the region to list in Singapore. With sponsors taking over the responsibility of assessing and monitoring IPOs, foreign companies that have proven their capabilities and growth potential will be able to seek sponsorship for a listing in Singapore.
This, in turn, will add breadth to the Singapore equity market and will yield benefits not just for SGX, but for the other market participants – bankers, brokers, lawyers, accountants and investors.
I have no doubt that SGX’s New Board will enhance the vibrancy of the Singapore market in the years ahead.
Thank you.
