Singapore taps Temasek, EDBI to boost SGX appeal

Singapore has announced a series of initiatives, including some backed by global investors Temasek and EDBI, to support and attract companies to list on the Singapore Exchange (SGX).

Gan Kim Yong, minister for trade and industry, revealed four core plans: establishing a co-investment fund, setting up a growth fund for initial public offerings, enhancing the Grant for Equity Market Singapore (GEMS) scheme, and forming a strategic partnership model for SGX.

SGX Centre, downtown Singapore / Photo credit: tang90246 / 123RF

Anchor Fund @ 65, the co-investment fund backed by the Singapore government and Temasek, will start with S$1.5 billion (US$1.11 billion) in its first tranche. Besides supporting public listings for high-growth firms, the fund will also provide pre-IPO financing.

EDBI, the investment arm of the Singapore Economic Development Board, will handle the Growth IPO Fund, pumping in an initial S$500 million (US$371 million) for supporting growth-stage firms. This compliments Anchor Fund’s investments, ensuring funding access for different types of companies.

Meanwhile, the Monetary Authority of Singapore will also expand the scope for listing and research talent development grants under the GEMS scheme.

For the listing grant, companies with more than S$1 billion (US$742 million) capitalization can get 70% of their listing expenses co-funded, with a cap of S$2 million (US$1.485 million). Smaller firms qualify for the same percentage of co-funding with a limit of S$1 million (US$742,000). This replaces the old categories used by GEMS

Under the scheme, funding for experienced professional Singapore citizens will also be boosted to S$6000 (US$4457) per month for two years – an increase of S$1000 (US$ 742) per month and one year longer than under the previous scheme.

Finally, SGX’s strategic partnership model will offer customized multiyear solutions to firms, including private fundraising, liquidity and profile building, quotation support, joint marketing, and global investor outreach.

“This interagency initiative further sets Singapore apart as a capital markets hub and is a first of its kind within the region that ensures success for market leaders through deep collaboration between public and private sectors,” said Loh Boon Chye, CEO of SGX.

Currency converted from Singapore dollar to US dollar: US$1=1.35 Singapore Dollar