IPO Aspirants Can Engage Investors Earlier Under New MAS Proposals

This will let issuers better gauge investor interest; move part of efforts to boost equities market

- Sue-Ann Tan

Companies targeting a listing on the Singapore Exchange (SGX) may be able to engage retail investors and potential institutional investors earlier in the process, under proposals unveiled by the Monetary Authority of Singapore (MAS).

The changes, if implemented, will provide greater flexibility and scope for issuers to gauge investor interest earlier in the initial public offering (IPO) process, MAS said.

"This will support bookbuilding efforts as well as give investors more time to familiarise themselves with the issuers and their intended offers," it added.

The proposed changes are part of a slew of proposals made by MAS and the Singapore Exchange Regulation on May 15 that also collectively form the first set of measures put forward to boost Singapore's equities market.

MAS is calling for views and suggestions on the proposals.

Under the current regime, a company undertaking an IPO can disseminate a prospectus, profile statement or a product highlights sheet to retail investors only after it has been registered by MAS.

This also means that engagement with retail investors can only take place after the prospectus registration.

"We have received feedback that the current publicity restrictions limit the ability of issuers to profile themselves to retail investors earlier in the IPO process," MAS said.

MAS proposes to allow issuers to disseminate the preliminary prospectus and present material on matters in the preliminary prospectus to retail investors, including during roadshows.