The Monetary Authority of Singapore (“MAS”) has announced that it will be launching a new SGD75 million Grant for Equity Market Singapore (“GEMS”). GEMS will be a three-year initiative which helps enterprises raise capital through Singapore’s equity market.
GEMS comprises three components: (a) Listing Grant to aid enterprises intending to list on the Singapore Exchange (“SGX”) by defraying part of their IPO costs; (b) Research Talent Development Grant to groom equity research talent; and (c) Research Initiatives Grant to support crowd-sourced initiatives to boost development of Singapore’s equity research ecosystem.
The level of funding available to enterprises under the Listing Grant is dependent on the industry sector as well as the market capitalisation of the enterprise. The MAS has categorised the eligibility and level of funding into three tiers. “Eligible Expenses” include listing related expenses such as undertaking, placement audit, legal, research, and SGX listing fees.
Level of Grant
|Sector||Minimum Market Capitalisation|
|New technology sector, which includes financial technologies, consumer digital technologies, on-demand services, and gaming services & peripherals||SGD300 million||70% of Eligible Expenses, with grant capped at SGD1 million|
|High growth sector, which includes digital cluster, advanced manufacturing, hub services, logistics, urban solutions & infrastructure, and healthcare||20% of Eligible Expenses, with grant capped at SGD500,000|
|All other sectors||None||20% of Eligible Expenses, with grant capped at SGD200,000|
GEMS will commence on 14 February 2019, and more details will be released by MAS closer to the commencement date. The press release released by MAS is available here.
This alert is intended for general information only and is not a substitute for legal advice.