<article><a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a> is proposing that Mainboard-listed corporations allocate a minimum of 10 per cent of shares in their initial public offers (IPOs) to retail investors.</article>

<a style="color: #000080;" href="http://dealstreetasia.com/tag/sgx" target="_blank">Singapore Exchange (SGX)</a> is proposing that Mainboard-listed corporations allocate a minimum of 10 per cent of shares in their initial public offers (IPOs) to retail investors.
As part of this proposal, SGX has suggested that offerings larger than S$1 billion need to allocate shares worth S$100 million ($70,9 million) to the public tranche, taking into account large deals where there is not insufficient demand.
This is the second consultation on the introduction of a mandated minimum IPO allocation to retail investors. The first consultation in 2012 proposed a 5 per cent retail allocation.
The increase in the proposed retail IPO allocation percentage follows positive feedback for a minimum allocation of shares in IPOs to retail investors from the 2012 consultation.
In a statement, the SGX said: &#8220;A minimum allocation will increase the opportunity for retail participation and generate greater interest in the securities market by retail investors. While some retail investors may sell their IPO shares shortly after listing, we believe that building greater investor interest in our securities market will lead to a more vibrant ecosystem for the future.&#8221;
In addition, over 90 per cent of IPOs which occurred in the 2010-2015 period had retail investor application rates greater than 10 per cent of the total offer size, indicating retail demand for IPO shares.
The SGX is also doing away with a &#8220;claw-back&#8221; requirement introduced in an earlier proposal that would have required IPOs to increase their allocations to the public, depending on the volume of public applications. Instead, the SGX is proposing to allow companies to reallocate public tranche shares to the private placement tranche if public applications are insufficient.
“SGX’s proposal for a minimum 10 per cent 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,” said <a style="color: #000080;" href="http://dealstreetasia.com/tag/loh-boon-chye" target="_blank">Loh Boon Chye</a>, CEO of SGX.
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The Singapore Exchange (SGX) is proposing that mainboard-listed companies allocated 10 per cent of their shares for retail investors during IPOs.

SGX proposes Mainboard-listed firms allocate 10% of IPO shares to retail investors

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SGX proposes Mainboard-listed firms allocate 10% of IPO shares to retail investors

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