- Rights Issue Exposure Period is shorter
The SGX will accept confidential submissions for all rights issue applications before the company makes an announcement. Confidential submissions were previously allowed only for underwritten issues. The notice of books closure date is also reduced from ten to five market days. Companies are also required to use a checklist to facilitate compliance with the listing reguirements. This should reduce the time that SGX takes to approve an application. - 100% Renounceable Pro-Rata Share Issuance
The listing rules had allowed listed companies to obtain shareholders’ approval for the issuance of new shares on a pro-rata basis amounting to not more than 50% of the issued share capital. SGX has increased the limit to allow listed companies to issue up to 100% of their issued share capital via a pro-rata renounceable rights issue. Shareholders have equal opportunities to participate or dispose of their entitlements if they do not wish to subscribe for their rights. The issuer remains responsible to make periodic announcements on the use of proceeds and report on such use in its annual report. - Discount Limit for Share Placements
In the current dismal market, the 10% maximum discount for a placement of shares has not been attractive to investors. This has hampered the efforts of listed companies to raise funds in this way. To improve the viability of placement exercises, SGX now allows issuers to undertake placements of new shares priced with a 20% maximum discount of the weighted average price for trades done on the date the placement agreement is signed subject to:- shareholders’ approval being obtained to issue new shares on a non pro-rata basis at a discount exceeding 10% but not more than 20%;
- any resolution for such non pro-rata issuance of shares is not conditional to the resolution in (1).
- Scrip Dividend Schemes
Subject to the Companies Act and other legal requirements, the payment of dividends through a scrip dividend scheme may now be carried out without the need for shareholders’ approval, if the listed company gives its shareholders the option to receive their dividends in cash. Measures (b) to (d) will be in effect until 31 December 2010. - Placements to Substantial Shareholders
March 13, 2010
Measures by SGX-ST to Facilitate Secondary Fundraising by Listed Companies
The Singapore Exchange Limited (“SGX”) has introduced a few measures to assist listed companies to raise funds in the current economic environment where credit is tight. The measures, which variously took effect from 13 January 2009 and 20 February 2009, include the following: