It is quite well known that at the height of the financial crisis in the USA, even the famed soccer club Manchester United was contemplating a listing on the SGX-ST as its owner Malcolm Glazer wanted to raise equity to pay off the huge amount of debt that he had raised in his acquisition of Manchester United. In the end, there were three markets that were shortlisted and London, Hong Kong and Singapore. Singapore made a pitch for the listing to the Glazer’s family and was poised to snatch the listing from Hong Kong, but it appears that finally the deal was aborted due to the two tranche shareholding issue where the Glazers wanted a separate special class of shares where they could control the company.
The question is why is Singapore such a good place for public fund raising for a company?
Fund raising in Singapore may be easier in part due to the fact that Singapore is one of the largest private banking and fund management capitals of the world. This has resulted in money flowing into Singapore from all over the world (as compared to Hong Kong where most of the wealth managed there flows out from China). Any company listing in Singapore can gain access to a more diversified pool of investors.
Singapore has the strong rule of law and has fund managers that are familiar with Asian companies and investing in Asian economies. This means that a potential investor can have greater certainty that he can enjoy higher returns (due to the high growth of the Asian economies) whilst knowing that the fund will comply with Singapore law in the making of investments. This translate into greater liquidity for funds flowing into the SGX-ST.
Singapore listings carry with it the perception of quality and due diligence. A company listed on the Singapore exchange has a right to be proud that it has cleared the quality standards of the SGX-ST. This is in stark contrast to the many countries in the region which are rife with corruption, fraud and political risk.
A listing on the Singapore bourse is thus something that a businessman can aspire to and a mark of recognition that his companies has attained the highest corporate governance standards. Thus raising funds on the Singapore Exchange is a good way to signal to your competitors, suppliers and customers that a company has made it and what better way than to list on the Singapore Exchange.
Contact us today if you would like to know more about listing on the Singapore Exchange. We can form a team to help you in your listing on the SGX as well as help with pre-IPO funding.