(Oct 9): Peter Choo Chee Kong, the one-time IPO king of the local market, says the Singapore Exchange ought to take a leaf out of Bursa Malaysia’s book and set up a third board for fast-growing upstart companies in cutting-edge fields such as stem cell technology. Quite apart from the access to funding, a listing would greatly benefit such companies in terms of building their public profile.

While the failure rate for such companies could be relatively high, Choo figures the fallout can be contained if investors are limited to high-net-worth individuals who understand the risks. He also suggests that this third board should be administered by people with the appropriate expertise in the fields of accounting, banking and law who answer to their own professional bodies, rather than for it to be run as a unit of SGX. “I would like to be involved,” Choo declares.

Isn’t the Catalist board supposed to support up-and-coming companies? Why set up a third board? The way Choo sees it, the vibrancy of Catalist has been sapped by listing costs that can easily top $1.5 million as well as onerous regulations. There is also a “fear of embarrassment” among regulators as well as IPO managers that prevents high-risk companies from getting listed.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook