Following a public consultation in 2012, the Singapore Exchange Securities Trading Limited (“SGX”) has implemented new rules for the listing and continuing reporting obligations applicable to mineral, oil and gas (“MOG”) companies on the SGX Mainboard. These new rules took effect on 27 September 2013. There is a transitional period to enable MOG companies that are already listed on the SGX Mainboard to implement compliance with the new continuing reporting obligations in steps over the next six to twelve months, depending on the nature of the obligation, following the effective date.
The new rules contain general Mainboard listing criteria for all MOG companies as well as additional listing requirements for MOG companies not yet able to fully meet specified SGX profitability and other financial benchmarks. The new rules seek to strike a balance between, on the one hand, increasing the listing requirements for MOG companies in light of the perceived risks associated with their industries (such as high capital costs and the risks inherent in exploration and extraction activities), and, on the other hand, strengthening Singapore’s position as a commodities hub and a listing venue of choice for prospective MOG issuers looking to access regional investors familiar with these industries. Our bulletin sets out a number of the key issues MOG companies seeking to list on the SGX Mainboard will need to consider as part of their listing preparations in light of the new rules that have been implemented.
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Herbert Smith Freehills LLP has a Formal Law Alliance (FLA) with Singapore law firm Prolegis LLC, which provides clients with access to Singapore law advice from Prolegis. The FLA in the name of Herbert Smith Freehills Prolegis allows the two firms to deliver a complementary and seamless legal service.