Companies may soon be able to cross-list shares on Nasdaq and SGX. Nasdaq Inc. (NDAQ) and Singapore Exchange (SGX) have signed an agreement that will allow the exchanges to suss out how interested corporates are in seeking a concurrent or sequential listing in both markets.
Nasdaq and SGX have had a strong working relationship. The American electronics equities exchange, the largest in world—both in terms of dollar value and share volume—provided the technology platform for SGX’s trading system in 2003.
The current agreement will allow companies to access capital and strengthen their brand in the US and Asia.
“The business landscape today is borderless,” said Loh Boon Chye, CEO of SGX. “Fast-growing Asian companies looking to tap the capital markets can choose to list on SGX on Asian home ground, and embark on a listing on Nasdaq as they expand their business globally.”
He added that partnering Nasdaq will help SGX-listed companies raise capital as well as market profile in the US.
Nasdaq CEO Adena Friedman noted that the deal acknowledges Asia’s role in driving the next phase of innovation. “Nasdaq is proud to be the home exchange to many successful innovators across Asia as well as a strategic partner to SGX, a preeminent exchange in the region. We look forward to helping companies access global capital markets and the broader investment community through this partnership,” she said.
Both parties are seeing if it is possible to bring SGX-listed companies under Nasdaq’s International Designation program. The program currently allows companies listed outside the US to trade in the US on the over-the-counter (OTC) market without having to abide by SEC (Securities and Exchange Commission) filing requirements.
The main benefit of the program is that it increases companies’ global credibility, and attracts interest from US investors.