SGX-Nasdaq dual-listing move removes dilemma of having to choose one exchange over the other
Blue chips like DBS, UOB, OCBC, Jardine will be more affordable to small investors under additional proposal to reduce board lot sizes
[SINGAPORE] US-listed Grab might have been dual listed in Singapore if the Singapore Exchange’s latest push for dual listings was around at the time they went public on Nasdaq.
On Wednesday (Nov 19), the local bourse unveiled two key changes aimed at boosting investor participation, attracting unicorns and energising market liquidity.
The first key change was the proposal of an SGX-Nasdaq dual-listing bridge, where companies with market values above S$2 billion will be able to list on both bourses using just one prospectus. At the time of its listing in the US, Grab had a multi-billion dollar market valuation.
The cross-border listing framework – scheduled to go live around mid-2026 – will differ from existing dual-listing arrangements, which require a different set of documents for each bourse.
Chee Hong Tat, the Minister for National Development Minister and MAS review group chair said the bridge will “enable issuers and investors alike to access liquidity simultaneously across both markets”.
At the same time, the SGX also announced its intention to reduce the board-lot size from 100 units down to 10 units for securities priced above S$10.
A board lot is a standardised number of units of a company offered as a trading block. The unit could be shares for a normal company or stapled securities for a real estate investment trust (Reit).
The change will apply to ordinary shares, real estate investment trusts, business trusts, company warrants, rights and depository receipts. Its aim, like the dual-listing bridge, is to reduce friction and increase the attractiveness of Singapore’s equities market.
As an illustration, the minimum trade for DBS will drop from about S$5,300 to about S$530 under the move.
What are the stocks that qualify for reduction of board lots?
Currently, around 13 securities are listed on the SGX that are more than S$10. These include the three banks DBS, UOB and OCBC, and other blue chips such as Keppel.
They represent around 40 per cent of the total market capitalisation of listed stocks.
According to SGX, the move to reduce board lots will include these counters as of the end of October:
What do the new initiatives mean for investors? The Business Times speaks to industry players to find out.
What investors need to know on the SGX-Nasdaq dual-listing bridge
In addition to smoothening the listing path for IPO candidates, the dual listing framework is also meant to drive liquidity by enabling continuous trading across time zones.
However, investors are somewhat limited by the boundaries of this framework: they will only be able to trade Singapore and US securities that apply to be dual listed under this framework.
Impact on companies, SGX
“At first glance, these changes seem minimal,” said Morningstar equity analyst Roy Van Keulen. But he beiieves that new Singaporean companies looking to secure larger liquidity pools around initial public offerings will likely find the bridge “more attractive”.
He said SGX would benefit as it would prevent a complete loss of trading revenue to foreign exchanges, especially for fast-growing technology companies that would otherwise prefer to list overseas if forced to choose between one exchange over the other.
JP Morgan Asset Management’s equity portfolio manager, Changqi Ong, shares this view. “This new initiative will remove the dilemma (of having to choose) and allow our most exciting companies to tap liquidity pools in both locations.”
“Since the start of this year, we have met many fast-growing Singapore-based companies who are looking to go public to raise capital to fund their next stage of growth,” she said.
She added that the bridge is also likely to attract fast-growing Asian companies to list here, strengthening the competitiveness of Singapore’s equities market.
Fullerton Fund Management’s chief executive Jenny Sofian said she expects the bridge to “attract greater participation from local and regional asset managers, as well as institutional and retail investors”.
This, she added, will “further enrich” the depth and dynamism of the Singapore equities market.
Despite the benefits, Van Keulen cautioned that the change will likely have a minimal impact on trading volumes.
“At the very small end of trading demand, there may be some change, but on the overall level, it’s typically not very noticeable,” he said.
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