30 July 2019
Effective from 15 July 2019, Singapore Exchange Limited (“SGX”) has revised the listing review process in respect of applications to list on the SGX Mainboard, which will apply to listing applications received by SGX on or after 15 July 2019.
SGX had issued a consultation paper on 29 November 2018 and sought feedback on proposed changes to the SGX Mainboard Listing Rules (“Listing Rules”) concerning the listing review process and the regulation of issue managers. On 12 July 2019, SGX issued its response to the feedback received on the listing review process. SGX is still reviewing the feedback received regarding the regulation of issue managers and will update the market in due course.
Change to listing review process
Under the Listing Rules, the SGX may refer a specific listing application to the Listings Advisory Committee (“LAC”) when the referral criteria under Rule 110(4), including where novel or unprecedented issues or matters of public interest are involved, have been satisfied. In addition, SGX would, prior to issuance of the eligibility-to-list (“ETL”) letter, report to the LAC on listing applications which satisfied admission requirements but had not been referred to the LAC (“non-referral applications”). Prior to 15 July 2019, the LAC had the discretion to convene an LAC meeting for any non-referral application if the LAC was of the view that a referral criterion was satisfied. This resulted in an unanticipated extended listing review for certain listing applications which led to concerns of uncertainty regarding the time taken for the listing review process.
Effective from 15 July 2019, SGX will still report to the LAC on non-referral applications, but only after the issuance of the ETL letter. The LAC will continue to review these applications, but its advice will only apply prospectively to similar applications. Accordingly, any advice or views rendered by the LAC on a non-referral application would not affect the existing application for which ETL had been granted (“Existing Application”). With this change, non-referral applications will have greater certainty on the time projected to be taken for the listing review process.
In its response, SGX has also clarified that even if there is a delay to the listing plans of the Existing Application due to market conditions, if there are no material changes or new developments to the Existing Application, the LAC’s advice and views rendered would still not affect the Existing Application, provided that the ETL remains valid.
The change in the listing review process received unanimous support from respondents to the consultation and would provide greater certainty and efficiency in the listing review process.