SGX Offers Global Depository Receipt Listing Facility

Singapore Exchange (SGX) is pleased to announce the offering of its Global Depository Receipt (GDR) listing facility. The listing of GDRs, which represent equity securities of corporations listed on other foreign stock exchanges, serves as an alternative avenue for international companies to access the Singapore capital market for global funds, broaden investor base and enhance their international profile.

As GDRs are specialised products offered to and traded only by institutional and accredited investors, the listing requirements and obligations for this type of offering is less onerous than public offerings. Hence, time to market for GDRs is faster and the total cost to companies is lower.

“Offering the GDR listing facility to international companies strengthens SGX’s position as an Asian gateway as it allows foreign companies, which wish to raise capital outside of their home market, an alternative funding avenue. Institutional investors seeking exposure to international companies not listed on SGX can now have direct access by investing in GDRs”, said Mr Lawrence Wong, Senior Vice President and Head of Listings at SGX.

Following a public consultation exercise and in response to the feedback received, highlights of the listing rules on GDRs are:-

• GDRs will be offered and traded only by institutional or accredited investors pursuant to Section 274 and 275 of the Securities and Futures Act.
• The listing of GDRs is based on equity securities that are already or will be concurrently listed on a foreign stock exchange.
• Corporations will observe the rules of their home exchange and all announcements made on the home exchange will be released simultaneously on SGXNET.

A complete set of the GDR listing rules and fee schedule can be accessed from SGX’s website at www.sgx.com or on clicking here.