SGX inks MOI with IMDA to lower access barriers for tech companies into the capital markets

By Digital News Asia June 1, 2017

A@IMDA to collaborate with SGX, IPO sponsors, law and audit firms to help lower barriers and costs
SGX, A@IMDA will foster ties and information sharing between the financial and tech communities

SGX inks MOI with IMDA to lower access barriers for tech companies into the capital markets

SINGAPORE Exchange (SGX) and Infocomm Media Development Authority (IMDA) signed a memorandum of intent (MOI) to create a streamlined pathway for fast growing IMDA-accredited companies to leverage private and public capital markets in Singapore more efficiently for expansion.

Through this MOI, both parties aim to lower the access barriers for technology companies into the capital markets, catalyse more high-tech IPOs and increase Singapore’s attractiveness as a venue for capital raising.

The signing was witnessed by Dr Yaacob Ibrahim, Minister for Communications and Information.

Accreditation@IMDA (A@IMDA) programme curates and nurtures a growing portfolio of promising, innovative tech companies for high growth.

Under the MOI, SGX will partner with A@IMDA to identify and galvanise key parties in the financial ecosystem to support the IMDA-accredited companies in their IPO journey, including facilitating pre-IPO funding, advising them on listing processes and preparing them for IPO listing.

A@IMDA will collaborate with SGX, IPO sponsors, law and audit firms to help lower the information barriers and costs for IMDA-accredited companies in the processes leading to IPO listing.

The intention is to better prepare the accredited companies for listing by embedding some of the steps required to become IPO-ready into A@IMDA’s existing accreditation processes. IMDA-accredited companies will thus benefit from more streamlined processes when seeking to raise capital.

In addition, SGX and A@IMDA will foster closer ties and information sharing between the financial and technology communities to enable technology companies and the ecosystem they are in to be better understood and appreciated, and consequently be taken into consideration by investors when valuing such technology companies.

These efforts aim to deepen the financial community’s understanding of the technology outlook, potential use cases and business models of these technology companies, and the industries in which they operate.

“Today’s collaboration between IMDA and SGX will provide high-growth Infocomm Media (ICM) companies access to capital markets, allowing them to leverage Singapore’s well-developed financial ecosystem to support their growth and expansion plans.

“I encourage ICM companies with innovative products and services to set up their base of operations in Singapore so that they can take full advantage of these programmes and platforms,” said Yaacob.

SGX chief executive officer Loh Boon Chye said, “Our collaboration with IMDA will foster a keener appreciation among Singapore technology firms of our capital markets as a source of funding, and offer them the potential of expanding their business into the broader region. We hope to galvanise more partners in the financial ecosystem to engage with these fast growing, innovative companies.”

IMDA chief executive Tan Kiat How said, “There are immense opportunities in the coming years for Singapore-based ICM companies as economies in the region transform and digitalise. The partnership between SGX and IMDA is an important step in deepening the collaboration between the technology and financial ecosystems, and enables both groups to benefit from this rapid growth. It also enables promising ICM companies to tap Singapore’s capital markets to scale up to the next phase of their growth.”