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The proposed rules allow life science companies that have not started commercial revenue-yielding activities in their primary line of businesses to list on Catalist thus accessing equity capital to fund their growth.
The proposal takes into account the capital intensive nature of the industry and the investment risk associated with life science research and development. In view of the distinctive business models of these companies, SGX is proposing additional measures to enhance transparency and timely disclosure for the benefit of investors.
“We are excited about the addition of a new sector to Catalist. This is part of our continuing efforts to enhance Catalist's value proposition and attractiveness as the preferred Asian listing venue for fast-growing companies,” said Mr Lawrence Wong, Executive Vice President and Head of Listings at SGX.
A summary of the key features of the proposed Catalist listing rules is as follows:
i. *A Non-Commericalised Life-Science Company is defined as a life science company that has not commenced revenue-yielding activities in its primary line of business. For this purpose, revenue that is incidental to the primary business, such as rental of laboratory facilities, should not be included.
ii. Introduction of additional criteria for listing of non-commercialised life science companies that have not commenced revenue-yielding activities. The additional listing criteria are in the areas of shareholding composition, moratorium on promoter’s shareholdings and adequacy of working capital.
iii. Introduction of Practice Note 4C that sets out the offer document disclosure requirements for the listing of non-commercialised life science companies.
iv. Requirement for non-commercialised life science companies listed on Catalist to provide quarterly reports on use of funds, projected use of funds for the next immediate quarter as well as material information on research and development activities undertaken.
v. Requirement for sponsors of non-commercialised life science companies to maintain access to appropriate technical expertise for the entire period in which they remain as sponsors of such companies.
The consultation paper, which explains the rationale and proposed rules in detail, is available on SGX website at www.sgx.com from today.
Market participants and members of the public can forward their feedback and suggestions on the proposed rules from 11 February 2009 to 3 March 2009 via email and either by post/courier or fax:-
Email: lm@sgx.com
Fax: (65) 6535 7919
Post/Courier: Singapore Exchange Limited
2 Shenton Way
- SGX Centre 1, #19-00
Attn: Charles Poon/Eliza Tan, Catalist Regulation
