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The Government of Singapore, SGX, announces measures to boost the stock market

The Government of Singapore, SGX, announces measures to boost the stock market

An escalator past an electronic screen and ticker board at the Singapore Exchange.

Lee Yen Nee | CNBC

The SINGAPORE-Singapore government on Friday announced a number of initiatives to boost the domestic stock market, including co-investing in a new fund to support “promising high-growth” companies.

The new fund will be set up with the state investment company Temasek. It starts with $ 1.5 billion ($ 1.1 billion) to help companies raise capital through public IPOs — whether primary, secondary or dual — in the Southeast Asian city-state.

Here are other initiatives that were announced:

  • The investment arm of the Singapore Economic Development Council intends to set up a new fund to invest in later stages and work towards a possible listing in the city-state. The fund starts with 500 million Singapore dollars.
  • The Financial Supervisory Authority, Monetary Authority of Singapore, will increase its subsidies to help companies cover the cost of listings.
  • The exchange operator, Singapore Exchange, will help high-growth companies raise funds privately before a public listing.

Earlier this month, SGX announced new rules for licensing companies or SPACs for special purposes. The move was seen as a way to revive Singapore’s stock market.

In an exclusive interview with CNBC, SGX CEO Loh Boon Chye said there is a “robust pipeline” of potential SPAC listings – and the first could come through in a few weeks.

Singapore’s stock market has surpassed many of its regional peers this year, with the benchmark Straits Times Index gaining around 7.8% at Thursday’s close.

But the initial public offerings on the Singapore Exchange have been deficient in comparison. In the first half of this year, Singapore drew only three listings that raised $ 200 million in revenue, while other financial hub Hong Kong had 46 listings that raised $ 27.4 billion.

– CNBC’s Weizhen Tan contributed to this report.

This is breaking news. Please check back for updates.

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