Singapore Lowers Restrictions for Proposed Dual-Class Shares (DCS)

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The Stock Exchange in Singapore are now planning to allow firms that have an proposed market capitalisation of S$300 million (USD $229 million) to list with dual-class shares (DCS).

This is instead of the previously minimum of S$500 million (USD $379 million), an action that could provide the city state with a considerable edge over their rival, Hong Kong.

According to Singapore Exchange Ltd, the new initiative was seen to be sufficient in public consultation and is in line with the mainboard listing requirements. This is at the same time that Singapore Exchange Ltd seeks to get ahead in the race to be the first Asian bourse to present a system targeting tech firms.

Moreover, the responsibility will be on the firm to showcase and convince the stock exchange that it requires the DCS structure to succeed. Following this, the exchange will consider the contribution and the role of the holder of multiple vote shares, growth trajectory, the firm’s track record and the participation of sophisticated investors.