15 May 2018
Category: News, Asia, Global, Singapore
By Asia Asset Management
The stock exchanges of Singapore and Israel are teaming up to attract technology and healthcare companies to list on both the bourses.
“This will include assisting companies during the pre-listing stage, facilitating the listing process, and providing issuers with post-listing support by leveraging the exchanges’ network and platforms,” according to a joint statement from Singapore Exchange (SGX) and the Tel-Aviv Stock Exchange (TASE) on May 14.
They will collaborate and “pro-actively engage” technology and healthcare companies that are looking to tap the capital markets to fund their growth plans in Asia and globally.
They will also explore other collaborations, including the potential development of a private market eco-system in Israel, and enhance the post-trade connectivity and services between the two markets.
The statement notes that Israel has the highest density of start-ups and venture capital investments in the world, and also the highest spending per capita on research and development (R&D), while Singapore has one of the strongest and most diverse start-up ecosystems.
“The partnership brings together the complementary strengths of SGX and TASE to create greater value for issuers and investors, and at the same time, extend each exchange’s geographical reach and connectivity,” it says.
Loh Boon Chye, chief executive officer of SGX, believes the deal can leverage on Israel’s reputation as “one of the world’s largest populations of technology start-ups” and a rapidly expanding R&D hub in the technology and biotechnology sector.
“Our partnership with TASE complements SGX’s efforts to strengthen our technology sector, as well as Singapore’s ambitions to be a global technology and R&D hub,” he says.
Ittai Ben-Zeev, chief executive officer of TASE, sees the partnership offer a “unique value proposition” to Israeli technology companies.
“For the first time, Israeli companies will be able to raise funds on both markets simultaneously,” he says. “Dual-listing or performing a simultaneous IPO on both exchanges can assist Israeli issuers in increasing liquidity and gaining attractive valuations from a broad Asian investor base while ensuring domestic demand.”