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Report: Singapore bourse to loosen proposed restrictions on dual-class listings

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Report: Singapore bourse to loosen proposed restrictions on dual-class listings

Singapore Exchange Ltd. plans to loosen some of the proposed restrictions it wanted to impose on dual-class listings, including a minimum market cap, in a move to attract technology companies to list in the city-state, Bloomberg News reported March 12, citing sources.

The proposed changes would remove an earlier recommendation for companies seeking dual-class share listings to have a market value of S$500 million and above, as well as a requirement for the company to be traded on the main market, said "people with knowledge of the deliberations who asked not to be named" Further, the stock exchange operator's proposal calls for the relaxation of a so-called sunset clause that would convert a dual-class structure into a traditional one after a certain time, they added.

The people also said details are being discussed and may change.

The proposed relaxation of restrictions is geared toward making Singapore a more attractive destination for technology company IPOs, amid expectations that regional rival Hong Kong will begin accepting applications for the listing of dual-class shares by the first half.

SGX's proposals are expected to be published in a second consultation in March, following an initial one that began in February 2017.

The stock exchange operator told Bloomberg in an emailed response that it is currently finalizing its responses to feedback obtained in the first consultation, and noted that the second consultation will reflect market views.

As of March 12, US$1 was equivalent to S$1.31.