SGX releases details of Listing Grant under GEMS to assist enterprises raise capital through Singapore's equity market
28 March 2019
On 14 January 2019, the Monetary Authority of Singapore (“MAS”) announced its plan to launch a new S$75 million Grant for Equity Market Singapore (“GEMS”) to assist enterprises which are seeking to raise capital through Singapore’s equity market. GEMS comprises three components, namely, a Listing Grant, a Research Talent Development Grant and a Research Initiatives Grant.
In February 2019, the Singapore Exchange Limited (“SGX”) released the details of the Listing Grant under GEMS (“GEMS Listing Grant”) which will be valid for three years from 14 February 2019 to 14 February 2022 (both dates inclusive).
GEMS Listing Grant is aimed at further encouraging eligible enterprises to list on Singapore Exchange Securities Trading Limited (“SGX-ST”). The Listing Grant will apply to issuers undertaking a fund raising exercise via a listing on SGX-ST by initial public offerings, reverse take-overs or secondary listings. The Listing Grant will not apply to a real estate investment trust (REIT) or business trust.
The eligibility criteria and corresponding level of funding are as follows:
- Enterprises in new technology sector with minimum market capitalisation of S$300 million: Co-fund 70% of eligible expenses attributable to listing (“eligible listing expenses”), with grant capped at S$1 million;
- Enterprises from high growth sectors with minimum market capitalisation of S$300 million: Co-fund 20% of eligible listing expenses, with grant capped at S$500,000; and
- Enterprises from all sectors with no minimum market capitalisation: Co-fund 20% of eligible listing expenses, with grant capped at S$200,000.
The new technology sectors include financial technologies, consumer digital technologies, on-demand services as well as gaming services and peripherals, while the high growth sectors include digital cluster, advanced manufacturing, hub services, logistics, urban solutions and infrastructure, and healthcare.
Eligible listing expenses that may be claimed
Eligible listing expenses that may be claimed under the GEMS Listing Grant include underwriting and placement fees (with 50% or more of the fees attributable to Singapore-based entities), audit fees, legal fees, market research fees and SGX listing fees. Goods and services tax and continuing listing cost cannot be claimed under GEMS Listing Grant.
An issuer’s issue manager or sponsor must submit the application form for making the claim to MAS within three months upon the successful listing of the issuer on SGX-ST.