08 Dec 2017
Singapore Exchange (SGX) has proposed to recalibrate disclosure requirements under the Listing Rules for areas of concern to both the market and the exchange.
These changes cover the following areas:
1. Secondary fund-raising
◾Additional upfront and prominent disclosure of the discount, ratio and other principal terms for rights issues.
◾A directors’ statement on why the rights issue is in the best interest of the issuer and their basis for forming such a view including justification for any discount.
◾Additional disclosure of the use of proceeds and intended use of unutilized amount if a rights issue takes place within a year of another fund-raising.
◾To announce specific usage of funds when disbursed if they were earmarked for “general working capital purposes” during the fund-raising exercise.
2. Interested Person Transactions
◾Interested Person Transactions below S$100,000 are no longer exempted from announcements or shareholder vote.
◾Additional disclosure on the nature of the relationship with the interested person.
◾Identify the relevant director, CEO or controlling shareholder of the issuer who will be covered by the IPT mandate.
3. Significant transactions and loans
◾Additional disclosures for loans that are not part of the issuer’s ordinary course of business.
◾Explanation on why no valuation was done for an acquisition or disposal of assets that is a major transaction except if the transaction involved shares.
◾Appointment of a competent and independent valuer for significant asset disposals.
Detailed information can be found on the below official hyperlinks:
We would appreciate if interested members could leave your comments on ARX or email
me by 06th
January 2018. CFA Singapore will submit a collective response to SGX if there are substantive comments. If you would like your identity to be kept confidential, please let us know in your response to us.