SGX RegCo Implements Measures to Support Issuers Amid COVID-19

SGX will suspend entry onto its Financial Watch-List.

As businesses continue to face challenges amid COVID-19, the Singapore Exchange Regulation (SGX RegCo) announced this Wednesday that, in consultation with the Monetary Authority of Singapore (MAS), it would introduce a series of measures to support issuers.

Among these measures includes enabling the acceleration of fund-raising efforts, the statement from SGX RegCo said. Furthermore, SGX will suspend entry onto its Financial Watch-List.

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The exchange places companies on its Financial Watch-List after they report three years of losses and when their market capitalization falls below S$40 million. Entry onto the list is meant to compel firms to turn their financial performance around.

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“In light of current conditions, which are both unprecedented and unforeseen, placing listed issuers on the Financial Watch-List during this period might cause undue prejudice to companies in navigating the business challenges in this climate,” the exchange said in the statement.

Furthermore, SGX RegCo will suspend half-yearly reviews on the first market days of June 2020 and December 2020 to place issuers on the Financial Watch-List.

“The Suspension is to enable our issuers to focus on meeting the current business and economic challenges and dealing with any resultant liquidity crunch,” the company said. “Companies which meet the exit criteria under the listing rules will continue to be able to exit the Watch-List. SGX RegCo shall determine where appropriate, if the Suspension requires further extension in due course.”

SGX RegCo updates measures for Mainboard issuers

Another measure to be implemented by SGX RegCo will allow Mainboard issuers to seek a general mandate for an issue of pro-rate shares and convertible securities of up to 100 percent of its share capital, as opposed to the 50 percent which was allowed previously. This will take effect today, on the 8th of April 2020, and will be in force until the 31st of December 2021.

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