SGX unveils new board to replace SESDAQ from Dec 17

SINGAPORE : The Singapore Exchange has unveiled its new start-up board aimed at drawing fast-growing companies in the region to list here.
The new board, which replaces Sesdaq next month, is called Catalist and is modelled after London's Alternative Investment Market, otherwise known as AIM.
Catalist is the name for the new sponsor-supervised board that has been much talked about in the last six months. It will go live on Monday, 17 December, replacing the current SESDAQ.
This means that 159 companies currently on the second board will be transferred to Catalist and they will have two years to either move up to the mainboard, or find a sponsor.
SGX chairman J Y Pillay unveiled the board's new name on Monday.
Using Catalist, SGX hopes to entice high growth companies with faster time-to-market of just 6 weeks from notification to trading, compared to 17 weeks on SESDAQ. However, finding a sponsor will be key.
Lawrence Wong, Executive VP and Head of Listings, SGX, said: "One is the full sponsor who effectively act as the gatekeeper for us in admitting the listed company.
"The second type of sponsors who are the continuing sponsors - they are actually an extension of the SGX in terms of supervising, which is why they actually play a very important role.
"They're doing two very important functions that SGX is doing today. We've set the criteria very stringently because we want to make sure that sponsors are of a certainly quality."
Market-watchers say the three local banks will likely be on the first list of approved sponsors to be announced in January.
Robson Lee, lawyer, Shook Lin and Bok, said: "Advisors will be very mindful of their personal responsibility both at the corporate level and at the personal officers level as far as compliance and adherence. They will ensure that corporate governance is adhered, best practices are adopted by issuers."
Gold mining startup CNMC is looking to be one of the first companies on the new board. It says it is already in talks with some international banks to raise funds through Catalist.
Meanwhile, the SGX also announced that there will be no profit or market cap requirements for companies seeking to list on the new board.
Mr Wong said: "End of May, we said there would be a market cap which is S$150 million. But when we went out to the market... the response is that market cap is not an issue because when we're talking about growth, there can be companies that are small, companies that are big."
Mr Lee said: "I think this is a good thing because then it will not preclude new board candidates from growing their market capitalisation because investors are very keen on their stock and (thus push) up their stock price."
However, rules such as interested persons transactions and quarterly reporting remain unchanged.
The CPF Board says members can continue to invest in companies currently on SESDAQ after the transfer to the new board.
But the board will evaluate if the new companies, which have limited track record, are suitable for CPF investment or not. - CNA/ch