Singapore Capital Markets For AusIMM Sydney

Transcription

1 Singapore Capital Markets For AusIMM Sydney Simon Lim SVP, Head of Listings for South East Asia and Australia October 2015 Singapore Exchange 新 交 所, 亚 洲 门 户

2 Contents 1 Why SGX Pg 2 2 Overview of Singapore and SGX Pg 3 3 Access through the Wealth Management Hub in Asia Pg 9 4 Minerals Sector Summary Pg 14 5 Listing Boards and Process Pg 22 1

3 Why SGX Summary Access through the wealth management hub of Asia Tap into liquidity provided by US$2.4 trillion of assets under management in Singapore Access a global investor base, including retail investors from China, India and South East Asia Trade in an Asian time zone Efficiency to meet your needs Mainboard for established companies Catalist for fast growth companies for more flexible fund raising and M&A Both Mainboard and Catalist listed stocks enjoy the lowest trading costs in Asia Leading Exchange in Asia for various sectors Three of the world s top 15 strongest banks The largest portfolio of Asia REITs and Business Trusts outside Japan Increasingly growing Mineral, Oil & Gas sector The largest pool of Maritime & Offshore listings in Asia Pacific

4 Overview Singapore & SGX 3

5 Singapore: An International Financial Centre Singapore is ranked the World s Best Place for doing business for 9 consecutive years Wealth management hub of Asia with largest institutional investor base >US$2.4 trillion assets under management Asia s largest foreign exchange trading hub >US$383 billion average daily volume Home to global companies Asia Pacific headquarters to >1/3 of Fortune 500 companies World s second-most competitive economy Ranked 2 nd in the 2014 World Economic Forum's Global Competitiveness Index Trading centre for commodities 400 global trading companies with 100 top global traders headquartered Global maritime and logistics hub World s largest bunker and trans-shipment port 2 nd largest container port 3 rd largest petrochemical refiner No.1 global logistics hub in 2012 Source: World Bank; Logistics Performance Index 4

6 SGX is the Most International Exchange Nearly 40% of all companies listed on SGX are overseas companies India 1% Singapore Exchange 771 Listed Companies Market Capitalisation US$636 billion Singapore 62% Non- Singapore 38% US 1% Europe 3% Australia 4% Japan & Korea 5% Southeast Asia 24% Taiwan 4% Hong Kong 15% China 43% London Stock Exchange New York Stock Exchange Hong Kong Stock Exchange Tokyo Stock Exchange Non-UK 21% UK 79% Non-US 21% US 79% Non- China 5% Non- Japan 1% China 95% Japan 99% Source: World Federation of Exchanges; Companies website & Singapore Exchange (Aug 2015) 5

7 Diversity of Industries on SGX SGX is the listing venue of choice for companies from varying sectors Breakdown by Number of Companies 771 companies in total Breakdown by Market Capitalisation US$636 billion in total Telecomms 1% Utilities 1% Healthcare Energy 4% 7% Materials 7% Industrials 29% Healthcare 3% Materials 1% Energy 1% IT 1% Telecomms 8% Utilities 1% Industrials 22% IT 11% Consumer 15% Financials * 16% Consumer 21% Financials ** 47% Note: * Real Estate accounts for 12% of the 771 companies ** Real Estate accounts for 18% of the total market capitalisation of US$636B Source: Singapore Exchange & Bloomberg (Aug 2015) 6

8 Top Sectors on SGX Consumer PE: 22x Includes the food & beverage, as well as the retail sectors with distribution across Asia 161 companies with market cap of US$91 billion Healthcare PE: 36x Full range of companies from pharmaceuticals, healthcare services to medical devices technology 28 companies and 3 REITs with market cap of US$25 billion Real Estate & Infrastructure PB: 1.1x Asia s broadest range of REITs and BTs covering Asian real estate assets 103 companies, REITs and BTs with market cap of US$144 billion Maritime & Offshore Services PE: 8x Asia s largest cluster of listed companies 58 companies and 3 business trusts with market cap of US$32 billion Financials PE: 12x Includes 3 of the world s 10 strongest banks 37 companies with market cap of US$197 billion Commodities and Resources PE: 12x Growth sector including world s largest palm oil company 47 companies with market cap of US$29 billion Source: Bloomberg & Singapore Exchange (Aug 2015) 7

9 Connectivity to ASEAN Economies Thailand 3 Listed Companies Market Cap: US$13 billion Listing location of Thai Beverage, one of the largest beverage players in Asia Malaysia 37 Listed Companies Market Cap: US$38 billion Listing location of IHH Healthcare, Asia s largest healthcare operator Myanmar 1 Listed Company Market Cap: US$436 million Listing location of Yoma Strategic, the only foreign company that has significant exposure to Myanmar Indonesia 27 Listed Companies Market Cap: US$13 billion Listing location of Lippo REIT, whose sponsor is PT Lippo Karawaci, Indonesia s largest listed property company Source: Bloomberg & Singapore Exchange (Aug 2015) 8

10 Access Wealth Management Hub of Asia 9

11 Singapore is Asia s Wealth Management Hub Over US$2.4 trillion AUM Institutional Funds >US$1,400 billion Private Wealth Management >US$500 billion Sovereign Wealth Funds ~US$500 billion Over 3,000 investment professionals, 4,000 registered funds and 200 fund management companies Singapore poised to be the 2 nd largest global asset management hub by Size of Asset Management Cluster New York Singapore London Boston 100 = size of largest cluster in 2010 Source: MAS 2013/2014 Annual Report; Asia-Pacific Wealth Report 2013; Sovereign Wealth Fund Institute (Jun 2014); PWC, Top Industry Clusters in 2040 Revealed (2010) 10

12 IPO & Secondary Fund Raising Proven in Bull & Bear Markets SGX listed companies raised US$5.8 billion in the secondary market in 2014 Equity Funds Raised (US$ billion) Secondary Fundraising 5.2 IPO Fundraising /8 Source: Singapore Exchange (Aug 2015) 11

13 Access to Both Global and Asian Investors in Singapore Global Investors Aberdeen Asset Management Blackrock Fund Management Blackrock Asset Management Capital International Credit Suisse Asset Management DBS Asset Management Deutsche Asset Management Fidelity International GIC Invesco Asset Management JP Morgan Legg Mason Global Lion Group Global Investment Morgan Stanley Investment Management Nomura Asset Management Prudential Financial Schroder Investment Management Temasek Holdings UBS Strategy Fund Management Chinese Investors QDII funds can invest in Singapore given MOU between MAS and CSRC for examples: ChinaAMC Global Selective Fund, China International Fund Management Co Ltd and ICBC Credit Suisse Asset Management Prominent Chinese investors in Singapore include Alibaba and Bosera, CIC, Sinochem, Petrochina and Huaneng 33,000 Chinese citizens have custodian accounts with our depository South & South East Asian Investors 200,000 South East Asian (excl. Singapore) citizens have custodian accounts with our depository 14,000 Indian citizens have custodian accounts with our depository Source: Bloomberg (Aug 2013) & Singapore Exchange (Mar 2015) 12

14 Active Retail Investors Participation Singapore retail investors can subscribe for IPOs via more than 2,000 ATMs Company Amount Raised (US$ million) Public Offer Size (US$ million) Retail Subscription Rate (public offer only) Retail Subscription Amount (US$ million) SPH REIT ** x 8,200 OUE Hospitality Trust ** x 7,258 Mapletree Industrial Trust* x 2,108 Global Logistic Properties * 2, x 1,689 Bumitama Agri x 367 ifast Corporation x 32 Note: * Both of these listed during the same week of 18 Oct 2010 **Both of these listed during the same week of 22nd July 2013 Source: Company announcements 13

15 Mineral, Oil & Gas Sector Summary 14

16 SGX Minerals Companies Increasingly growing from 3 in 2011 to 17 currently Energy Precious Metals Industrials Minerals Diversified Businesses BlackGold Natural Resources * ^ Geo Energy Resources Golden Energy and Resources Resources Prima * ^ CNMC Goldmine Holdings * Wilton Resources * Alliance Minerals Assets * ^ AsiaPhos * GCCP * ^ Terratech * ^ Abterra ** China Mining International ** Falcon Energy ** Magnus Energy ** Malaysia Smelting Corp ** Manhattan Resources ** Sincap* ** Note: * Listed on Catalist, ** has significant non-mog business Source: Bloomberg (Apr 2015) 15

17 2014 and 2015 Fund Raising IPO and RTO Fund raising Year New Minerals IPOs and RTOs Total Initial Fund Raising (S$m) to September 2 53 Source: Company announcements, SGX 16

18 Proportion of Minerals Companies on Global Exchanges SGX will increase to an equilibrium point many times higher than current level Exchange % Minerals Companies of Total Market Capitalisation ASX 16.9% TSX 6.3% LSE 6.3% HKEx 3.5% SGX 0.5% Source: Bloomberg and ICB, 22 September

19 Formula for success 18

20 The Market is Ready for More Mineral, Oil & Gas Listings How SGX supports the market SGX organises investor education Relevant topics (to the right is the auditorium at Introduction to Minerals ) Target audience is Investors (retail & professional), analysts, media, regulators, bankers, etc. Topics cascade from high level introductions, to specific commodity, country and technical Ie, Intro to gold industry, then Australian gold Sessions on JORC, valuation, due diligence, evaluation studies 53 seminars with 5,400 attendees This year 33 new attendees per seminar Web clips are posted on SGX Channel on youtube and have in total >31,000 views 19

21 SGX & SPRING's Collaboration on Capabilities Development Grant Outcome: Support Local SMEs to Develop their Capabilities for Growth Competency Building Corporate Structures Financial Reporting Framework Corporate Governance & Internal Control Framework Risk Management Framework Investor Relations Tap on SPRING Singapore s CDG to defray up to 70% of the qualifying project costs. The actual funding amount will depend on the scope and cost of the project. 20

22 Criteria Registered and Operating in Singapore At least 30% local shareholding Group annual sales turnover S$100m, OR group employment of 200 employees 21

23 Listing Boards and Process Efficiency to Meet Your Needs 22

24 SGX Mainboard and Catalist Mainboard Catalist 1.Regulatory Approach 2.Target Companies 3.IPO Review and Post-IPO Supervision 4.Key benefits Exchange-regulated & supervised Established Companies Exchange Established branding Access to a wider range of institutional investors Exchange-regulated, Sponsor-supervised Fast-Growing Companies Sponsors Faster time to market Easier corporate actions 5. Quotation & trading Ready cash market Ready cash market 23

25 Summary of MOG Listing Rules Principal activity is exploration for or extraction of minerals or oil & gas Criteria for Admission (No revenue or profit requirements ) For mineral companies, established Indicated Resources For oil & gas companies, established Contingent Resources For Mainboard, market cap of at least S$300mn for pre-production companies Need exploration and exploitation rights Qualified Person's Report (Not older than 6 months before date of lodgment) Qualified Person professionally qualified, with at least 5 years relevant experience, and a member/licensee of a self-regulatory professional organisation Accepted Technical Standard: VALMIN, SPE-PRMS, JORC, NI43-101, PERC Valuation: VALMIN, SPE-PRMS Other requirements (see rules): Working Capital Requirement of 18 months from date of lodgment An independent director with appropriate industry experience & expertise 24

26 SGX for Growing Companies New Share Issues General Mandate for Non Pro Rata Mainboard Up to 20% of total issued shares In force until next AGM Catalist Up to 50% of total issued shares (ordinary resolution) ; or Up to 100% of total issued shares (special resolution) In force until next AGM Threshold for Major Transaction of any of the bases set out in Rule 1006* Exceeding 20% Exceeding: - Acquisition: 75% but less than 100%; or - Disposal: 50% Note: * Bases in Rule 1006 include: (i) Net Asset value of assets to be disposed (vs net asset value); (ii) net profits attributable to the assets acquired or disposed (vs group s net profits); (iii) Consideration given or received (vs Issuer s market capitalization); and (iv) Number of equity securities issued as consideration (vs number of equity securities previously in issue) For further details of the listing rule, please refer to SGX s Listing Manual. 25

27 Catalist is a Sponsor Supervised Board Sponsor is required to list and remain listed on Catalist Pre-Listing Full Sponsors prepare issuer for admission into Catalist Ensure that listing applicant has sufficient systems, procedures, controls and resources to comply with the listing rule requirements Oversee and be actively involved in the preparation of relevant documents and ensure compliance with rule requirements when listing Post-Listing Continuing Sponsors ensure issuer is compliant with rules Advise issuer on all rule and corporate governance matters Ensure that the issuer is in compliance with the rules and make proper disclosures Issuer must retain the services of its listing Sponsor for at least 3 years after Catalist listing 26

28 Speed-to-Market for Equity Listings Efficient application process allows issuers to catch window of opportunity Preparation to Apply Submission of Listings Admission Pack (LAP) Lodgment and Public Exposure on OPERA Mainboard Timeline 4 weeks 2 weeks 1-2 weeks Trading Commences Stage 1: Submission of Section (A) of LAP Section A includes information of your company and sets out the resolution of key issues for SGX s assessment on whether they have been adequately resolved Stage 2: Submission of Section (B) of LAP Section B includes draft prospectus and full listing application Registration & Launch Preparation to Apply & Pre-consultation Lodgment and Public Exposure on Catalodge Catalist Timeline Notification to SGX 4 weeks 2 weeks 1-2 weeks Registration & Launch Trading Commences Source: Exchanges Websites and Published Listing Guides 27

29 SGX Equity Listing Fees Mainboard Catalist Minimum S$100,000 Minimum S$30,000 Initial Fees (1) Maximum S$200,000 Maximum S$100,000 Variable S$100 / S$Mn market cap Variable S$100 / S$Mn market cap Minimum S$35,000 Minimum S$15,000 Annual Fees (2) Maximum S$150,000 Maximum S$50,000 Variable S$30 / S$Mn market cap Variable S$25 / S$Mn market cap Note: (1) Initial fees apply when a new class of securities issued by an issuer is listed, excluding a fixed non-refundable fee of S$20,000 for Mainboard and S$2,000 for Catalist (2) Billed bi-annually in June and December each year 28

30 SGX Equity Listing Fees Mainboard Catalist Additional Fees (3) Minimum Maximum Variable S$30,000 S$200,000 S$100 / S$Mn market cap Fixed One time fee for lodgment S$8,000 S$1,000 Processing Fees for Documents Minimum Maximum S$3,000 S$8,000 Additional Trading Board Lots Fixed S$20,000 per annum of each board lot Note: (3) Additional fees apply when an issuer issues additional securities of a class already listed. 29

31 Thank you For more information, please contact: Simon Lim (65) Singapore Exchange London Tokyo Beijing Hong Kong Mumbai sgx.com This presentation is being made available to certain authorized recipients for their general information only. While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The information in this presentation is subject to change without notice. Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility and liability arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof. SGX Ltd, September 2014