Firms will soon get the opportunity to list in both the U.S. and Singapore in a first-of-its kind partnership. The SGX-NASDAQ dual listing bridge, which will commence later this year, is part of Singapore’s drive to revitalize its stock exchange, which has persistently lagged other regional bourses like the Hong Kong Stock Exchange in attracting IPOs and other deals.
The bridge will likely appeal to Southeast Asian companies who want to draw on the U.S.’s deep capital market, yet still tap “strong brand recognition” in Southeast Asia, says Chan Yew Kiang, the ASEAN IPO leader at accounting firm EY.
Tay Hwee Ling, capital service markets leader of Deloitte Southeast Asia, adds that U.S. firms might also take the opportunity to extend their trading hours beyond the close of U.S. markets, as well as strengthen their presence in Southeast Asia.
The partnership also broadens investment options for Asian investors looking to diversify amid geopolitical uncertainty, says Clifford Lee, global head of investment banking at DBS.
“With the Global Listing Board, companies can access the best of both worlds—U.S. market depth and Asian growth in a streamlined pathway,” an SGX spokesperson said.
