The Singapore Exchange (SGX) Friday announced new Mainboard admission rules and continuing listing obligations for mineral, oil and gas (“MOG”) companies.
These new rules apply to both pre-production MOG companies and those in production.
‘With the new rules, a wider spectrum of MOG companies can tap into Asia’s vast pool of liquidity via SGX. Investors will also have more choices of investing in this sector,’ a statement from the SGX said.
The SGX, quoted in the widely followed Straits Times Index (STI), is Asia’s most internationalized exchange.
More than 40% of the companies listed are based outside Singapore.
The new MOG listing rules go into effect from September 27, 2013.
The SGX said it has also developed ‘transitional arrangements to facilitate existing MOG companies on the Mainboard complying with the new continuing listing requirements.’
The new rules include the following for MOG listing aspirants that are not in production:
Has market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital; and
Discloses its plans, milestones and capital expenditure to advance to production stage.
All MOG listing applicants, whether in production or otherwise, will also need to:
Have at least achieved Indicated Resources (for Minerals) or Contingent Resources (for Oil & Gas)
Have sufficient working capital for 18 months from listing
Have at least one independent director with appropriate industry experience and expertise
Appoint an audit firm with the relevant industry experience
And MOG companies will also need to include a valuation report on its reserves in the offering document and provide an independent qualified person report for reporting of significant resource or reserve.
Details can be accessed on www.sgx.com.