Apr. 21 – The Singapore Exchange (SGX) sees Indian companies as an attractive source for new listings, says Lawrence Wong, the head of listings at SGX.
“Singapore offers an international listing platform with breadth and depth, an economy that is a spring board to Southeast Asia and North Asia, and sector strengths such as marine, offshore and energy, REITs and property trust, resources and commodity trading to name a few,” Wong stated while also stressing the close cultural and political ties between Singapore and India.
Four Indian companies, nine global deposit receipts, and several bonds are already listed on the SGX and several more companies from India are planning IPOs for listing on the Singaporean bourse.
SGX also suits Indian needs by offering two listing platforms: the Main Board and the Catalist. The former is designed for larger, established companies while the latter is more suitable for start-up and growth companies.
Indian real estate companies DLF and Unitech are launching out on the SGX in the near future with IPO plans of roughly US$1.09 billion and US$364.4 million, respectively.
These companies are also enjoying lower trade tariffs under the India-Singapore Comprehensive Economic Cooperation Agreement, which came into effect in 2005. Chris Devonshire-Ellis of Dezan Shira & Associates commented: “Singapore is an attractive regional hub for the China–India space and it is not a surprise to see the SGX picking up an increasing number of Indian and some Chinese clients. Dezan Shira & Associates are also evaluating the prospects for the establishment of a Singaporean presence and we hope to have a regional office in place in 2011 to cater for that same market.”