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Listing on the Asian Gateway

Simon Lim

Head of Listings, South East Asia 20 September 2013

SGX The Asian Gateway SGX The Asian Gateway

Contents

1

Overview 1 02

Why List on SGX – Valuations 2 08

Why List on SGX – Access 3 11

Page

The Listing Choice in Asia

Why List on SGX – Support 4 16

Summary 5 21

SGX The Asian Gateway

1. Overview

Singapore & SGX

The Listing Choice in Asia 2


Asia’s most competitive city in attracting businesses, efficiency

and promoting a clean environment

– World’s third-most competitive city after New York and London

amongst 120 cities

Home to global companies

– Asia Pacific headquarters to >1/3 of Fortune 500 companies

Wealth hub with largest institutional investor base in Asia

– >US$1.8 trillion assets under management

Trading centre for commodities

– World’s largest bunker port and 2nd largest container port

– 300 global trading companies

– 90 top global traders globally/regionally headquartered here

Singapore – A Global Financial Centre


World’s Best Place for Doing Business

Source: Ranked by World Bank as “World’s best place for doing business”, according to Report on “Benchmarking global

city competitiveness” from the Economist Intelligence Unit Limited 2012, Commissioned by Citigroup Inc


Non-Singapore

38%

Singapore

62%

UK 79%

Non-UK 21%

SGX – A Truly International Exchange

4

London Stock Exchange New York Stock Exchange Hong Kong Stock Exchange Tokyo Stock Exchange

Singapore Exchange

Southeast Asia

20%

India

2%

Greater China

67%

Japan & Korea, 4%

Australia, 3%

Europe, 3%

US, 1%

Country of Origin for Overseas Companies

Source: World Federation of Exchanges (Jul 2013) & Singapore Exchange (Aug 2013)

782 Listed Companies,

Market Capitalisation

US$725 billion

US 78%

Non-US 22%

China 94%

Non- China

6%

Japan 99%

Non-Japan 1%


SGX Securities Markets


Exchange-regulated

& supervised

Exchange-regulated,

Sponsor-supervised

Established Companies Fast-Growing Companies

Exchange Sponsors

Established branding

Access to a wider range of

institutional investors

More product types

Faster time to market

Easier corporate actions

Regulatory Approach

Target Companies

IPO Review & Post-IPO Supervision

Key Benefits

Mainboard Catalist


Quantitative Criteria

6

(a) Profitable in latest financial year with operating track record of 3 years and

market capitalisation of at least S$150 mil; OR

(b) Positive operating revenue in the latest financial year and a market

capitalisation of at least S$300 mil; OR

(c) Minimum pre-tax profit of at least S$30 mil for latest financial year and has

operating track record for 3 years

(positive cash flow required from operating activities)

No quantitative requirement (Sponsor prescribes in-house criteria)

Mainboard

Quantitative

Criteria

Catalist

Quantitative

Criteria



2. Why List on SGX

Strong Valuations & Liquidity, Access and Support



High Valuations

Strong Investor Interest



23 out of 26 IPOs in 2012 opened up from

their offer price, with opening premiums

ranging between 4% and 55%

These 26 IPOs closed with a weighted

average return of 12% on their first trading day

Post IPO, the weighted average return to-date

stands at a healthy 23%

As an IPO destination in 2012, SGX offered

one of the world’s best performing and

stable stock markets, with the STI gaining

20% in 2012 of other international indices. The

STI is also the least volatile over the past year,

compared to the Nikkei 225, Hang Seng Index,

and other peers.

Strong SGX IPO & Market Performance in 2012

9

Source: Bloomberg & SGX (Dec 2012)



18 out of 21 SGX listings in 2013

opened up from their offer price, with

opening premiums of 1% to 53%

These 21 listings closed with a

weighted average return of 7% on

their first trading day

Weighted average return to-date

stands at a positive 4% despite

choppy markets

SGX is 4th Largest Exchange for IPO in 1Q2013

10

Source: Wall Street Journal (18th Mar 2013), Bloomberg & SGX

0 2 4 6

Moscow

London

Hong Kong

Iraq

Mexico

Nasdaq

Singapore

Frankfurt

Tokyo

New York

Glo

bal N

ew

Lis

tin

gs b

y V

olu

me

by E

xc

han

ge

(U

S$

B)


Access

Wealth Management Hub of Asia



Over US$1.8 trillion AUM1, while AUM in Hong Kong is about US$1.3 trillion2

– Institutional Funds >US$1,000 billion

– Private Wealth Management >US$400 billion

– Temasek and GIC >US$250 billion

Over 2,500 investment professionals, over 4,000 registered funds and over 100 fund

management companies

One of the most distribution-friendly markets in Asia3

– Third-highest income per capita in the world in terms of purchasing power parity

– First port of call for Asian and Middle Eastern investors due to low taxes, ease of capital

flows and stable political environment

World's largest wealth management centre by 20134

Singapore: Wealth Management Hub of Asia

12

Sources:

1 MAS 2011 Survey report, industry sources, Temasek and GIC annual reports 2012

2 HK SFC 2011 Survey report

3 Financial Times, dated 21 Oct 2012

4 PwC Global Private Banking and Wealth Management Survey 2011



During the Global Financial Crisis in 2009, SGX listed companies raised more than

US$15 billion to strengthen their balance sheets

Fund Raising Proven in Bull & Bear Markets


0.3 1.1 1.1

2.2 3.9

5.3 5.7

1.4 2.3

5.0

8.3

1.8 2.8

1.4 1.4 1.3

1.8

2.7

2.8

10.5

2.9

15.2

3.5

5.0

2.9

2.9

0

2

4

6

8

10

12

14

16

18

Fu

nd

s R

ais

ed

(U

S$

billio

n)

Secondary Fundraising

IPO Fundraising


Company

Amount

Raised

(US$m)

Public

Offer Size

(US$m)

Retail

(Public Offer

only)

Subscription

Rate

Retail

Subscription

Amount

(US$m)

HUTCHINSON PORT

HOLDINGS TRUST 5,500 187 2x 281

GLOBAL LOGISTIC

PROPERTIES * 2,111 154 11x 1,689

MAPLETREE INDUSTRIAL

TRUST * 427 76 28x 2,108

TIGER AIRWAYS HOLDINGS

LIMITED 198 13 23x 306

BUMITAMA AGRI LIMITED 176 9 40x 367

KRISENERGY # 241 10 23x 220

SPH REIT # 440 260 25x 6,508

OUE HOSPITALITY TRUST # 476 303 19x 5,760

Active Retail Investors’ Participation


Note: * Both of these listed during the same week in Oct 2010

# All of these listed during the same week in Jul 2013

Source: Company announcements

Singapore retail investors can subscribe for IPOs via 2,000 ATMs


Asian Investors in Singapore


Note: Bosera is the discretionary manager of certain equity portfolio of the National Council for Social Security Fund of the PRC

China:

– QDII funds can invest in Singapore given MOU between MAS and CSRC for examples: ChinaAMC

Global Selective Fund, China International Fund Management Co Ltd and ICBC Credit Suisse Asset

Management Co., Ltd

– Prominent Chinese investors in Singapore include Alibaba and Bosera, China Investment Corporation,

Sinochem, Petrochina and Huaneng

– Chinese citizen may remit up to US$50,000 overseas annually, per State Administration of Foreign

Exchange rules and may freely open trading and banking accounts in Singapore

– >25,000 Chinese citizens have custodian accounts with our depository

South & Southeast Asia:

– 195,000 Southeast Asia (Malaysian, Indonesian, Thai, Filipino, Myanmar, etc) citizens have custodian

accounts with our depository

– 13,000 Indian citizens have custodian accounts with our depository

– Indian resident investors are allowed to invest up to US$200,000 outside India


Support

Efficiency to Meet The Market’s Needs



Efficient application process allows issuers to catch window of opportunity

Fast Time-to-Market


Trading

Commences

Preparation to

Apply +

Pre-consultation

SGX & MAS

Concurrent Review

6 – 8 weeks 2 weeks 1 - 2 weeks

Lodgment and

Public Exposure

on OPERA

Registration

& Launch

Mainboard Timeline

Trading

Commences Notification to SGX

4 weeks 2 weeks 1 - 2 weeks

Lodgment and

Public Exposure

on Catalodge

Registration

& Launch

Catalist Timeline

Preparation to

Apply


Fast time-to-market: Review process takes 4-5 weeks only

No minimum quantitative admission criteria

Easier subsequent fund raising

Easier acquisitions & disposals

Lower minimum number of shareholders required

Lower requirement for post-invitation share capital in public

hands

Fewer independent directors required

Catalist – for Fast Growing Companies



Short review process: 4-8 weeks

No restrictions on cornerstone and pre-IPO investors

partaking in public offer

No minimum profit requirement

No restrictions on paid-up capital

Minimum public float of between 12-25%

For secondary fund raising, issuers may issue up to 50% of

issued capital under the share issue mandate

Prospectus only need be in English

Market Oriented Regulatory Framework



Supporting and Partnering After Listing – SGX Corporate Services

20

BOARD EXCELLENCE

Board Effectiveness Service

(Heidrick & Struggles)

Board Management Tool

(NASDAQ – Directors Desk)

Board D&O Survey

(AON)

Corporate Governance Education

Programs

(Singapore Institute of Directors)

CORPORATE ACTIONS

Dividend Distribution

(CDP)

Capital Raising

(CDP - Rights issue/bonus issue/stock

splits/share buyback/private placement)

Shareholding Services

(CDP)

Proxy and Poll Voting

(Broadridge)

INVESTOR OUTREACH

Company Research

(S&P - SERI Plus)

Corporate Intelligence

(NASDAQ- CI)

Investor Relations Website Hosting

(NASDAQ – Web360)

Media Solutions

(NASDAQ - Audio/Video;

Xpress Holdings – Print/Bind)

Corporate News Distribution

(NASDAQ – GlobeNewsWire)

Investor Road Shows

(SGX, UBS & DBS)

Benefit from a suite of product and services to help you raise your profile and increase investor interest through

investors relations, research, local investor seminars, and overseas road-shows


SGX The Asian Gateway SGX The Asian Gateway The Listing Choice in Asia 21

Why SGX – Summary

Tap into liquidity provided by more than US$1.8trillion of assets under management in Singapore 1

Access a wide global investor base, including Chinese retail & institutions 2

Strong valuations, proven especially for sectors where peers listed on SGX enjoy rich valuation 3

Capture opportunities with fast time-to-market and market-oriented regulatory framework 4

Proactive support from SGX to increase profiling and liquidity after listing 5


Access through the wealth management hub of Asia

Strong valuations and liquidity

Efficiency to meet your needs


This presentation is being made available to certain authorized recipients for their general information only.

While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of

any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such

information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The

information in this presentation is subject to change without notice.

Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility

and liability arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof.

© SGX Ltd, November 2010

www.sgx.com

Thank You

22

Singapore Exchange • London • Tokyo • Beijing

2 Shenton Way, #19-00 SGX Centre 1, Singapore 068804

Main: (65) 6236 8888 Fax: (65) 6535 6994


For more information, please contact:

Mr Simon Lim, Head of Listings, South East Asia

Email: [email protected]

DID: +65 6236 8553

Ms Teng Yi Ling, Associate Director (Singapore & South East Asia)

Email: [email protected]

DID: +65 6236 5191

Documents

Listing on the Asian Gateway - Home - ASPRIaspri.com.sg/wordpress/wp-content/uploads/2015/02/ASPRI-Members...Fund Raising Proven in Bull & Bear Markets ... Global Selective Fund, China