Singapore Introduces More Flexible Measures for Fund Raising

Singapore Exchange Limited (SGX) Monday announced new measures to provide listed issuers greater flexibility in raising funds through the rights issue framework.

The SGX said in a statement that it will reduce exposure period for rights issue by accepting confidential submissions for all rights issue applications prior to announcement. Currently, confidential submission to the SGX is only allowed for underwritten rights issue.

The SGX will also shorten the notice of books closure date from the current ten market days to five market days, and introduce a checklist to facilitate compliance by issuers and underwriters with provisions governing rights issue.

Moreover, the exchange announced new conditions for allowing sub-underwriting arrangements with major shareholders. The board of the issuing company has to give the assurance that the sub-underwriting arrangements are fair to the issuer and other shareholders.

The SGX said in the statement that it will continually engage market participants to enhance the attractiveness of the marketplace.

The new measures are a follow-up to the first equity fund raising announcement issued on Dec. 19, 2008, and will be effective immediately on Jan. 13.

Source: CRIEnglish