SGX could force firms to make 10% of shares available to retail

Singapore Exchange consultation on IPOs proposes retail investors should have guaranteed access to shares.

Companies seeking to list on the Singapore Exchange’s Mainboard may have to allocate 10% of their shares to retail investors in future.

The suggestion, published at the end of February is subject to a new consultation on the introduction of a mandated minimum IPO allocation to retail investors, after an initial consultation in 2012.

Market participants wishing to respond to the consultation, have until 24 March 2016.

Loh Boon Chye, chief executive officer of SGX, said the increase in the proposed retail IPO allocation percentage follows positive feedback for a threshold level to be set for retail investors.

He explained: “SGX’s proposal for a minimum 10% retail allocation for shares of Mainboard IPOs is aimed at giving individuals more investing opportunities in the Singapore equities market.

“While market conditions may have been uncertain of late, this initiative is for the long-term and is part of overall enhancements to the Singapore stock market.”

Consultation responses should be sent to or to the Listing Policy and Product Admission team at the Singapore Exchange.