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The change in initial listing, processing and annual listing fees will take effect from 1 January 2006. This will apply to all companies seeking a listing or already listed on the Mainboard, and to SESDAQ-listed companies with a market capitalisation of at least S$50 million. The increase in annual listing fees will be phased in during 2006. In 2006, listed companies will be granted a 50% rebate on the annual fee increase. Thereafter, the new fees apply in full.
SGX is mindful of its role in market development for our smaller enterprises. As such, there will not be a revision in annual listing fees for SESDAQ-listed companies with a market capitalisation of less than S$50 million.
The revised fee structure serves to better reflect the value of a listing on SGX. This will also bring SGX's pricing in line with other international exchanges, and remains competitive for companies seeking to raise capital in a premier listing venue. In considering the fee revision, we have also taken into account the cost impact to listed companies. The revised fees remain small in relation to the total cost of a public listing, and the operating expenses of a listed company.
Substantial Market Enhancements
SGX continues to make substantial investments in structural improvements to our marketplace and development of new services, to benefit our listed companies.
The securities trading module of a new trading engine costing more than S$20 million is expected to be launched in the first half of 2006. This platform supports new products and sophisticated trading strategies, and will enhance trading liquidity in the shares of our listed companies. Alliances and linkages have also been forged to enlarge our distribution networks that extend market reach to investors globally.
Since 2003, SGX has put in place initiatives to raise the profile of listed companies. These initiatives include regular international roadshows and the Research Incentive Scheme (RIS). Through RIS, more than 2,000 research reports on 187 listed companies have been made available on the SGX website, attracting more than 50,000 downloads by investors each month. SGX has also led the market in the development of internationally-recognised regional indices to increase visibility of our listed companies.
Enhanced Regulatory Framework
The regulatory framework is continuously being enhanced to strengthen investor confidence in our marketplace and hence, our listed companies. Programmes for listed companies, such as courses on corporate governance and director's duties, will also contribute towards this objective. Additional resources have been committed to improve efficiency in regulatory processing that will help support corporate actions. The infrastructure supporting disclosures by listed companies was recently migrated to the new SGXNET platform, which allows for greater efficiency and timeliness in making corporate announcements.
SGX remains committed to building an enduring marketplace and will continue to pursue initiatives that add value to our listed companies. As a leading financial centre, SGX is well positioned as an Asian gateway for international market participants, including investors and listed companies, to tap growth opportunities.
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Issue date: 10 November 2005
Notes:
1. The revised listing fees apply only to equity securities, including company warrants and other convertible securities. They do not apply to bonds, notes and structured warrants.
2. Initial listing fees are payable when an issuer submits its application for admission to SGX's Official List.
3. Additional listing fees are payable when a listed company issues additional securities of the same class already listed on SGX.
CURRENT AND NEW LISTING AND PROCESSING FEES
New Fees * - The new fees indicated refer to the fees before the rebate of 50% on annual fees in 2006. Thereafter, from 2007, the new fees apply in full.
