Singapore Exchange (SGX) has signed a Memorandum of Intent (MoI) with Infocomm Media Development Authority (IMDA) to enable easy access to capital for local as well as foreign companies. Hence, this will allow IMDA-accredited companies to leverage private and public capital markets in Singapore more efficiently for expansion.
Together, both the entities want to lower the access barriers for technology companies into the capital markets. They intend to catalyze more high-tech IPOs and increase Singapore’s attractiveness as a venue for capital raising. Dr. Yaacob Ibrahim, Minister for Communications and Information, who was present at the signing today, in a statement, says,
Today’s collaboration between IMDA and SGX will provide high-growth Infocomm Media (ICM) companies access to capital markets, allowing them to leverage Singapore’s well-developed financial ecosystem to support their growth and expansion plans.
IMDA’s Accreditation@IMDA (A@IMDA) programme, which was launched in 2014, aims to provide Singapore-headquartered tech companies with resources and investment. It nurtures the growing portfolio of promising, innovative tech companies for high growth, thereby helping them to scale locally and globally.
Under this deal, SGX will collaborate with A@IMDA to recognize and galvanize key parties in the financial ecosystem to support the IMDA-accredited companies in their IPO journey. They want these entities to assist in facilitating pre-IPO funding, advising them on listing processes and preparing them for IPO listing. Dr. Yaacob added,
I encourage ICM companies with innovative products and services to set up their base of operations in Singapore so that they can take full advantage of these programmes and platforms.
In addition, SGX and A@IMDA will facilitate information sharing and closer ties and information sharing between the financial and technology communities. Through this they want the investors to better understand the conditions prevailing in the tech ecosystem when valuing the technology companies. Tan Kiat How, Chief Executive at IMDA, added to this saying,
The partnership between SGX and IMDA is an important step in deepening the collaboration between the technology and financial ecosystems, and enables both groups to benefit from this rapid growth. It also enables promising ICM companies to tap Singapore’s capital markets to scale up to the next phase of their growth.
