The Monetary Authority of Singapore (MAS) is set to launch a new S$75m grant scheme for Equity Market Singapore (GEMS) on 14 February in its efforts to enhance Singapore's role as Asia's centre for capital raising and enterprise financing.
The announcement was made by Finance minister Keng Swee Keat at the UBS Wealth Insights conference this Monday.
"Singapore has been working to enhance our private and public markets so that domestic and international growth enterprises are able to access different types of capital best suited to their needs," said Ng Yao Loong, assistant managing director at MAS in a media statement.
The Grant for Equity Market Singapore (GEMS) is a three-year initiative aiming to help enterprises who are seeking to raise capital through Singapore's equity market, plus boost the research ecosystem.
It will have three components: the first component is a listing grant to help defray initial public offering (IPO) costs for companies seeking a listing on the Singapore Exchange (SGX).
The second component is a research talent development grant to enhance Singapore's research coverage by grooming equity research talent. The third component is a research initiatives grant to support crowd-sourced initiatives to boost Singapore's equity research ecosystem.
The quantum for listing grants will vary depending on the enterprise sector and its market capitalisation. For example, enterprises in a new tech sector with a minimum market cap of S$300m could receive co-funding of 70% of eligible listing expenses, with the grant capped at S$1m.
Meanwhile, enterprises from all sectors with no minimum market capitalisation could receive co-funding of 20% of eligible listing expenses, with the grant capped at S$200,000.
The grant scheme is Singapore's latest move to enhance the country's role as an enterprise financing hub. Last November the MAS announced a $5bn private markets programme (PMP) to fund locally based fund managers who invest in private enterprises and infrastructure projects.
Top-up scheme for next six months