MAS Sets Aside SGD$75 M to Position Singapore as Asia’s Centre for Capital Raisingby Fintech News Singapore January 15, 2019
The Monetary Authority of Singapore (MAS) will launch a new S$75 million Grant for Equity Market Singapore (GEMS) next month
Mr Heng Swee Keat, Minister for Finance and MAS Board Member, highlighted Singapore’s vision to serve as Asia’s centre for capital raising and enterprise financing during the annoucement. GEMS will be a three-year initiative to help enterprises seeking to raise capital through Singapore’s equity market.
GEMS will have three components:
a. Listing Grant: to facilitate enterprises seeking a listing on Singapore Exchange (SGX) by defraying part of their Initial Public Offering (IPO) costs;
b. Research Talent Development Grant: to strengthen Singapore’s research coverage of enterprises by grooming equity research talent; and
c. Research Initiatives Grant: to support crowd-sourced initiatives to propel the development of Singapore’s equity research ecosystem.
Singapore’s equity market has supported the fund raising needs of a wide range of enterprises when they choose to list on SGX. This includes listings of foreign enterprises, real estate investment trusts and business trusts. The listing grant, with different funding tiers, will further encourage eligible enterprises across a range of sectors to list on SGX. The eligibility and funding tiers are listed below:
|Level of funding
|Enterprises in new technology sector with minimum market capitalisation of S$300 million
|Co-fund 70% of 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
|Enterprises from all sectors with no minimum market capitalisation
|Co-fund 20% of eligible listing expenses, with grant capped at S$200,000
Research Talent Development Grant
Enhanced research coverage, particularly for mid and small-cap enterprises, can help improve investor knowledge, which will in turn facilitate price discovery and liquidity. The research talent development grant is designed to groom a pipeline of equity research analysts and retain experienced research talent to initiate research coverage primarily of listed mid and small-cap enterprises. The grant will co-fund locals in the following areas:
a. 70% of the salaries for fresh graduates hired as equity research analysts; and
b. 50% of the salaries for re-employed experienced equity research analysts.
Research Initiatives Grant
MAS will earmark funds to crowd-source initiatives that will propel the development of Singapore’s equity research ecosystem. Such initiatives can include publication of industry or sector primers, innovative ways to distribute research and disseminate enterprise information to investors.
Mr Ng Yao Loong, Assistant Managing Director, MAS, said,
“Singapore has been working to enhance our private and public markets so that domestic and international growth enterprises are able to access different types of capital best suited to their needs. Results from our private market initiatives 3 and bond grant schemes 4 have been encouraging. GEMS will help strengthen Singapore’s position as the go-to venue in Asia for enterprises seeking growth financing.”
Featured image credit: Monetary Authority of Singapore