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Singapore Exchange today announced measures to facilitate and shorten time-to-market for secondary fund raising. These measures will take effect from 1 January 2011 with amendments to the securities listing rules applicable to both the Mainboard and Catalist board.
Temporary measures on fund raising were initiated in January and February 2009 to enable companies to raise capital efficiently under tight credit conditions during a global credit crunch. Following a public consultation and review conducted earlier this year, SGX will formalize a majority of the temporary measures in the interests of both shareholders and listed issuers. The measures that will be effective from 1 January 2011 are as follows:-- Shortening the notice of books closure date from 10 to 5 clear market days;
- Allowing issuers to undertake non-renounceable rights issue without specific shareholders' approval, provided the rights shares are priced at a discount not exceeding 10%;
- Allowing issuers to issue scrip dividends without shareholders' approval, provided shareholders are given a cash option; and
- Introducing a new practice note in the Listing Manual to provide guidance on subunderwriting arrangements, including the need to seek specific shareholders' approval where sub-underwriting fees are paid to controlling shareholders and substantial shareholders.
Measures such as a higher threshold for renounceable pro-rata share issuances and larger discount limits for placement exercises will cease after 31 December 2010 after taking into account feedback from market participants on their potential dilution effects.
The amended listing rules that will support the above measures can be accessed from SGX’s website at www.sgx.com.
