.jpg)
Singapore Exchange (SGX) is amending the Mainboard and Catalist Listing Rules for mineral, oil and gas (MOG) companies to reflect how the sector categorises companies based on each firm’s stage of development.
Companies at an earlier stage of development can now list under the framework. The Mainboard will continue to be for businesses that are more mature than those on Catalist, based on both asset development and size.
The rule changes follow a consultation of the market where a majority of the respondents expressed support. A working group comprising MOG specialists including technical experts, corporate finance advisers and senior executives from SGX-listed issuers had provided input on the SGX proposals which were consulted on.
Two areas in the earlier proposal were tweaked in response to feedback as follows:
- Rather than the proposed Summary Qualified Person’s Report (QPR), SGX will require an annual Summary of Reserves and Resources. Only if a company’s “reserves” and “resources” change materially will a Summary QPR become necessary.
- The board directors of the company, rather than a Qualified Person, will have to provide evidence of the company’s intention to proceed with the development of the reserves within a reasonable period.
“The changes to the mineral, oil and gas rules will better align us with industry requirements, thereby enabling us to help MOG companies to raise funds at an early stage of development. Investors will also benefit from the clearer distinction between MOG firms on Mainboard and those on Catalist,” said Chew Sutat, Head of Equities and Fixed Income, SGX.
The amended rules are effective 23 August 2018. SGX’s responses to the feedback received can be found here.
