Singapore courts equity listings with package including $1.1 billion fund

Singapore's ministry of trade and industry said the government and state investor Temasek will set up a co-investment fund to invest in late-stage private funding and IPOs of high-growth firms, to anchor their listings in Singapore.

"We have heard repeatedly that one area where Singapore can do better is in making our public equity market more conducive for innovative growth companies," Gan Kim Yong, minister for trade and industry, said during an event at SGX broadcast virtually.

"As more of our start-ups mature into regional and global companies, having a vibrant home equity market becomes more pertinent," he said.

The moves come after SGX earlier this month unveiled new rules allowing listings of special purpose acquisition companies, marking the first Asian bourse to do since the now-waning U.S. SPAC frenzy began last year.

With a small base of retail investors in a city of 5.7 million people, SGX has struggled to capture big regional initial public offerings (IPOs). It has also seen a wave of delistings, although it remains a global fundraising venue for real estate investment trusts.

With a first tranche of S$1.5 billion ($1.1 billion) of capital, the new fund will be managed on a commercial basis by 65 Equity Partners, a new fully-owned Temasek investment platform.

EDBI, the investment arm of the Singapore Economic Development Board, will also establish a new 'Growth IPO Fund' to invest in later-stage companies, typically at two or more funding rounds away from a public listing. Currently, EDBI makes early-stage investments.

Starting with a fund size of up to S$500 million, EDBI will partner with companies to grow their operations in Singapore, with a view towards a listing on SGX.

Friday's proposals were jointly announced by the trade and industry ministry, EDBI, Temasek, the Monetary Authority of Singapore and SGX.