SINGAPORE: The Association of Banks in Singapore (ABS) announced an enhancement of the ABS Listings Due Diligence Guidelines, which have been revised in close collaboration with Singapore Exchange Regulation (SGX RegCo) to raise standards of due diligence conducted on companies planning to list on Singapore Exchange (SGX). 

The updated Guidelines launched today are an enhancement from the previous guidelines, which were last revised in 2016.

They set out expectations and recommendations on due diligence work that issue managers and full sponsors carry out during the initial public offer (IPO) / reverse takeover (RTO) and listing process.

Key updates in the revised guidelines include:

• An increased focus on the assessment of the adequacy and effectiveness of the issuer’s internal controls to meet its business needs and challenges as a listed company;
• The assessment of the sustainability and viability of the issuer’s business, taking into consideration, in particular, the challenges posed by the prevailing economic climate; and
• Targeted guidelines for due diligence on issuers operating in specialised, restricted or niche industries, and/or in higher risk jurisdictions.

Mrs Ong-Ang Ai Boon, Director, ABS, said, “Association of Banks in Singapore (ABS) is pleased to have worked closely with SGX RegCo once again to update, strengthen and refine the standards of due diligence that our members are expected to carry out.

“These guidelines represent an important supporting pillar of robustness to Singapore’s positioning as a leading listing venue for sectors including healthcare, commodities, oil and gas, REITs and business trusts – and regular updates are necessary to ensure that the guidelines continue to be relevant to the constantly-changing economic climate.

“With the increase in issuers from more nascent sectors such as technology that are seeking equity capital, it becomes especially important for issue managers, full sponsors and their professionals to adapt due diligence practices that address the particular needs of the new market environment.”

Mr Tan Boon Gin, CEO, SGX RegCo, said, “Issue managers and full sponsors are our fellow frontline gatekeepers to our market. That is their first and foremost role and responsibility.

“They must therefore emphasise substance over form and exhibit a healthy dose of professional scepticism when conducting listings due diligence. Where due diligence is robust and of a high standard, increased investor confidence and quality listings will follow.”

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