29 September 2021
On 17 September 2021, the Monetary Authority of Singapore (“MAS”) announced a package of initiatives to support high-growth enterprises to raise capital in Singapore’s public equity market and broaden Singapore’s proposition as a financing hub. The initiatives will enhance Singapore’s attractiveness as a destination for capital raising by local and regional enterprises, building on recent initiatives undertaken by Singapore Exchange (“SGX”) to strengthen its platform, connectivity, and its range of fundraising options. These include dual-listing collaborations with overseas exchanges, and the launch of the Special Purpose Acquisition Companies (SPACs) framework.
Speaking at the SGX Securities Market Open event, Minister for Trade and Industry Gan Kim Yong announced these initiatives:
- Establishment of co-investment fund Anchor Fund @ 65: This fund will support promising high-growth enterprises and market leaders in their public fundraising in Singapore’s public equity market, whether through primary, secondary, or dual listings, as well as provide pre-IPO financing to catalyse the growth of target enterprises and support them in their journey towards an eventual public listing.
- Establishment of the Growth IPO Fund: This fund will be established by EDBI, the dedicated investment arm of the Singapore Economic Development Board. It will invest in later-stage enterprises, typically those at two or more funding rounds away from a public listing. Through this fund, EDBI will partner with companies to grow their operations in Singapore, and work towards an eventual public listing in Singapore.
- Enhancements to the Grant for Equity Market Singapore (GEMS) scheme: MAS’ GEMS scheme, first introduced in February 2019, aims to strengthen Singapore’s equity capital market by supporting enterprises seeking to list in Singapore, and to help develop Singapore’s equity research ecosystem.
- SGX Strategic Partnership Model: Beyond providing a listing platform for IPOs, SGX will package bespoke capital market solutions which will develop bespoke solutions ranging from private market fundraising to liquidity building and global investor outreach for high-growth companies.
Further details on these initiatives are set out in Annex A to the MAS press release.
- Press release on “Boosting Equity Financing for High-Growth Enterprises”
- Annex A Factsheet on the Initiatives
- Annex B Infographic on GEMS
- Speech by Mr Gan Kim Yong, Minister for Trade and Industry, at the SGX Securities Market Open Event on 17 September 2021
- Speech by Loh Boon Chye, Chief Executive Officer, SGX for Securities Market Opening