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SGX launches equity crowdfunding JV for smaller firms

SINGAPORE — The Singapore Exchange (SGX) is gearing up its efforts to support smaller firms and entrepreneurs here by establishing a partnership with venture capital Clearbridge Accelerator (CBA) to develop what they say is a one-of-its-kind equity crowdfunding platform in Asia.

Outside the Singapore Exchange (SGX) centre. TODAY file photo

Outside the Singapore Exchange (SGX) centre. TODAY file photo

SINGAPORE — The Singapore Exchange (SGX) is gearing up its efforts to support smaller firms and entrepreneurs here by establishing a partnership with venture capital Clearbridge Accelerator (CBA) to develop what they say is a one-of-its-kind equity crowdfunding platform in Asia.

The platform will allow entrepreneurs and small and medium enterprises (SMEs) to raise funds, while giving investors the opportunity to participate in the growth of these companies, SGX and CBA said yesterday.

“This new capital-raising platform is positioned to address the financing gap that entrepreneurs currently face at a pre-IPO (initial public offering) stage. The platform will provide both entrepreneurs and investors a more efficient manner in which they can raise capital or discover investment opportunities,” said Mr Mohamed Nasser Ismail, SGX’s head of SME development and listing.

“Investors will benefit from the growth of the companies, whether they eventually are acquired through corporate transactions such as mergers and acquisitions or successfully list on a stock exchange like SGX’s Catalist or Mainboard,” he added.

SGX and CBA have signed a memorandum of understanding to form a joint-venture company to develop the proposed platform. The announcement of the partnership came less than a week after the bourse posted its first quarterly growth in more than a year in the three months ended December. SGX said unlike its Catalist and Mainboard where there is continuous trading activity, the new platform is solely for companies to seek funding. But the venture could be a potential feeder board for listings on the exchange.

CBA’s managing partner Johnson Chen said the two parties hope the platform will attract not just entrepreneurs and SMEs from Singapore, but those from the region as well. However, eligibility criteria for companies are still being finalised. LEE YEN NEE

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