The Singapore Exchange (SGX) hopes its new dual class share
(DCS) listing rules, launched on June 26, will attract more
issuers, especially technology startups. But its approach to
vetting issuers is already a concern.
Compared to the criteria for weighted voting rights (WVR)
listings in Hong Kong, the threshold is lower in Singapore but
issuers may be met with other challenges. Factors that the SGX
may consider in assessing suitability include the business
model or track record of the issuer, the role and contribution
of the intended multiple vote shareholders to the success of
the issuer and participation by sophisticated investors.
Guidance on suitability factors will be provided through
"The very flexibility of the
DCS rules may be a challenge in itself in that the
first IPOs to implement them will come under greater
scrutiny and there may be more pressure on the
authorities to justify the terms. "