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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 22, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>MAS confirms 'road test' to speed up IPO review
It also cuts public exposure period for draft prospectuses
By LYNETTE KHOO
THE Monetary Authority of Singapore (MAS) has confirmed that it has commenced a road-test with the Singapore Exchange (SGX) on a concurrent review process for initial public offerings (IPOs) here.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>'Seven days is more than sufficient to address any issues.'
- Rachel Eng,
head of capital markets and corporate department at WongPartnership</TD></TR></TBODY></TABLE>This confirms an earlier BT report which said the regulators have launched a 'road test' to fast-track the IPO review process from March 1.
Issuers may submit their draft prospectuses to MAS for pre-lodgement review at the same time they submit their listing applications to SGX.
MAS also confirmed that it has reduced the public exposure period for such prospectuses that undergo pre-lodgment review from 14 days to seven days.
The new concurrent review process is meant to 'reduce the time-to-market and enhance the attractiveness of Singapore as a listing destination', a MAS spokesman said yesterday.
Industry players have given feedback that the current two-stage process increases time-to-market.
Under the current process, issuers first submit their listing applications to SGX for a review that takes eight to 12 weeks before they obtain the Eligibility to List (ETL) status.
They would then lodge the draft prospectus publicly with MAS, which takes another two to four weeks to review the prospectus for legal and statutory compliance while the document is open for public comment.
BT understands that MAS Corporate Finance Division informed IPO professionals about streamlining the IPO review process on Feb 25 in closed-door meetings.
The new review process is not compulsory and IPO aspirants have the option to stick with the current two-stage process. No outfit has tried the new system yet.
MAS confirmed yesterday that a draft prospectus that is reviewed pre-lodgement will not be subject to further review during the public exposure period unless there are new developments or public comments that have material impact on the issuer or IPO.
The regulators will review and fine-tune the process after one year of implementation.
IPO professionals are generally in favour of the new process and the shortened public exposure period, which is said to be critical for large global offerings.
'Seven days is more than sufficient to address any issues,' said Rachel Eng, head of capital markets and corporate department at WongPartnership.
Even in the case of receiving poison pen letters, the turnaround to respond to queries from MAS tends to be swift, she said.
The amount of public comments and time required to respond tend to differ from case to case.
In some cases, public comments on the lodged prospectus are minimal, while in other instances, there are many queries and the issuer may need to seek a time extension to register its prospectus, industry players noted.
Hong Kong Stock Exchange does not observe this practice of lodging the draft prospectus for public comment before the IPO launch.
Though this public exposure period may at times draw in unverifiable poison pen letters, Drew & Napier director Marcus Chow said this practice should still stay 'in the interest of the public'.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>MAS confirms 'road test' to speed up IPO review
It also cuts public exposure period for draft prospectuses
By LYNETTE KHOO
THE Monetary Authority of Singapore (MAS) has confirmed that it has commenced a road-test with the Singapore Exchange (SGX) on a concurrent review process for initial public offerings (IPOs) here.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>'Seven days is more than sufficient to address any issues.' - Rachel Eng,
head of capital markets and corporate department at WongPartnership</TD></TR></TBODY></TABLE>This confirms an earlier BT report which said the regulators have launched a 'road test' to fast-track the IPO review process from March 1.
Issuers may submit their draft prospectuses to MAS for pre-lodgement review at the same time they submit their listing applications to SGX.
MAS also confirmed that it has reduced the public exposure period for such prospectuses that undergo pre-lodgment review from 14 days to seven days.
The new concurrent review process is meant to 'reduce the time-to-market and enhance the attractiveness of Singapore as a listing destination', a MAS spokesman said yesterday.
Industry players have given feedback that the current two-stage process increases time-to-market.
Under the current process, issuers first submit their listing applications to SGX for a review that takes eight to 12 weeks before they obtain the Eligibility to List (ETL) status.
They would then lodge the draft prospectus publicly with MAS, which takes another two to four weeks to review the prospectus for legal and statutory compliance while the document is open for public comment.
BT understands that MAS Corporate Finance Division informed IPO professionals about streamlining the IPO review process on Feb 25 in closed-door meetings.
The new review process is not compulsory and IPO aspirants have the option to stick with the current two-stage process. No outfit has tried the new system yet.
MAS confirmed yesterday that a draft prospectus that is reviewed pre-lodgement will not be subject to further review during the public exposure period unless there are new developments or public comments that have material impact on the issuer or IPO.
The regulators will review and fine-tune the process after one year of implementation.
IPO professionals are generally in favour of the new process and the shortened public exposure period, which is said to be critical for large global offerings.
'Seven days is more than sufficient to address any issues,' said Rachel Eng, head of capital markets and corporate department at WongPartnership.
Even in the case of receiving poison pen letters, the turnaround to respond to queries from MAS tends to be swift, she said.
The amount of public comments and time required to respond tend to differ from case to case.
In some cases, public comments on the lodged prospectus are minimal, while in other instances, there are many queries and the issuer may need to seek a time extension to register its prospectus, industry players noted.
Hong Kong Stock Exchange does not observe this practice of lodging the draft prospectus for public comment before the IPO launch.
Though this public exposure period may at times draw in unverifiable poison pen letters, Drew & Napier director Marcus Chow said this practice should still stay 'in the interest of the public'.
</TD></TR></TBODY></TABLE>
