Boosting Equity Financing for High-Growth Enterprises
Singapore, 17 September 2021… Singapore announced a package of initiatives to support high-growth enterprises to raise capital in Singapore’s public equity market and broaden Singapore’s proposition as a financing hub.
a. Establishment of a co-investment fund named Anchor Fund @ 65 that will help promising high-growth enterprises raise capital through public listings in Singapore;
b. Establishment of the Growth IPO Fund that will help late-stage private enterprises at about two or more funding rounds away from a public listing to grow and prepare for an eventual public listing in Singapore;
c. Enhancements to the Grant for Equity Market Singapore (GEMS) scheme to support enterprises seeking to list in Singapore, and to help develop Singapore’s equity research ecosystem; and
d. Singapore Exchange’s Strategic Partnership Model, which will develop bespoke solutions ranging from private market fundraising to liquidity building and global investor outreach for high-growth companies.
3. The initiatives will enhance Singapore’s attractiveness as a destination for capital raising by local and regional enterprises. They build on recent initiatives undertaken by SGX to strengthen its platform, connectivity, and its range of fundraising options. These include dual-listing collaborations with overseas exchanges, and the launch of the Special Purpose Acquisition Companies (SPACs) framework.
4. Loh Boon Chye, Chief Executive Officer of SGX, said, “There are many Asian and home-grown companies which are at the cusp of global success. Anchored in Asia’s only AAA-rated economy, SGX provides an international platform, network and ecosystem for these companies to access growth capital from private to public markets and across asset classes. This interagency initiative further sets Singapore apart as a capital markets hub and is a first of its kind within the region that ensures success for market leaders through deep collaboration between public and private sectors.”
MAS today launched a public consultation on its proposal to streamline the regulatory framework for fund managers. Specifically, the existing Registered Fund Management Companies (RFMCs) regime will be repealed, and existing RFMCs that are in operation will be approved as Licensed Fund Management Companies upon application.