SGX partners Third500 to court US late-stage, venture-backed listings

A logo of the Singapore Stock Exchange (SGX) is pictured outside its premises in the financial district of Singapore April 23, 2014. REUTERS/Edgar Su/Files

The Singapore Stock Exchange (SGX) is teaming up with Third500, an affiliate of US healthcare investment bank Healthios Capital, to court US late-stage, venture-backed companies looking to list in the city-state.

According to an official statement, SGX and Third500 will develop a market development plan to build a pre-IPO and IPO market to encourage more companies to list in the country. This is one of several moves SGX has taken to deepen its IPO pipeline.

In June, SGX approved dual-class shares, allowing it to better compete with Hong Kong Exchange (HKex) which is increasingly seen as an attractive destination for listings in Asia. SGX has also been forging closer links with foreign exchanges such as NASDAQ and Tel Aviv Stock Exchange (TASE) to deepen its IPO pipeline.

The SGX – Third500 partnership will target later-stage, venture-backed companies looking for exposure to the region. The potential companies involved will mainly be US healthcare and medtech companies, but may also cover telecom, media, energy, technology and consumer discretionary industries from other markets.

Mohamed Nasser Ismail, Head of Equity Capital Market (SME) and Head of Capital Market Development, SGX, said, “Third500 and Healthios focus on the issuers we are seeking and have a strong presence in Singapore. Their thoughtful pathway generates quality issuers which have Asian institutional investors and commercial strategies with a convertible linked to an SGX listing. This pathway has the potential to drive many listings to SGX, while serving the needs of issuers and investors.”

In May, SGX and TASE said they were ‘proactively engaging’ tech and healthcare firms to list on both their exchanges.

A strong IPO pipeline of companies is expected on the SGX this year, according to a Business Times article. The SGX expects sectors like pharmaceutical, medical services and US REITs to rake in strong listings.