SGX 'still in running' for Aramco's IPO, Companies & Markets News & Top Stories

The chief executive officer of Singapore Exchange (SGX) said his bourse is still in the running to win a listing of shares of oil giant Saudi Aramco, in what could be the world's biggest initial public offering (IPO).

"We're as good as any other exchange," Mr Loh Boon Chye said in a Bloomberg Television interview in Riyadh, Saudi Arabia. "We stand as good a chance as any others.

"For global companies that have a significant global presence, listing beyond one venue allows for wider investor participation."

At least half a dozen exchanges including those in New York, London, Hong Kong, Tokyo and Toronto are vying for a slice of Saudi Arabian Oil Co's IPO. The head of the kingdom's local bourse said earlier this week it is aiming for exclusive rights to host the share sale.

The planned debut of Aramco next year is a key part of an ambitious plan that Crown Prince Mohammed bin Salman proposed to wean the kingdom off its economic dependency on oil. The government has said the sale of 5 per cent of the business could value Aramco at as much as US$2 trillion (S$2.7 trillion). Analysts have tended to give lower estimates.

New York Stock Exchange CEO Thomas Farley said on Thursday his bourse is still in talks with Aramco about its listing.

SGX's Mr Loh said his exchange had received interest from companies looking to list in part because of rules that allow dual-class shares on his market for secondary listings.

He wouldn't be drawn, however, on whether SGX will allow multiple share classes for primary listings. The exchange is considering "wide-ranging views" it received in response to a public consultation on the issue, he said.

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Singapore Exchange launches SM, MEG swaps/futures contracts

SINGAPORE (ICIS)--Singapore Exchange’s (SGX) recent launch of styrene monomer (SM) and monoethylene glycol (MEG) futures and swap contracts will provide the market with an alternative tool to over-the-counter deals, an exchange spokesperson said on Friday.

SGX on 23 October introduced the SGX ICIS Monoethylene Glycol (MEG) Swaps and Futures as well as the SGX ICIS Styrene Monomer (SM) Swaps and Futures contracts. (please see tables below for further details)

The underlying prices for the contracts will be based on ICIS’ MEG and SM price assessments.

With the launch, SGX is the first exchange to offer clearing of petrochemical swaps and futures that reference the ICIS MEG CFR China Main Ports Index and ICIS SM CFR China (weekly price range) Index, the exchange said in an earlier statement.

“With the launch of these styrene monomer and monoethylene glycol swaps and futures we are providing the market with an exchange-traded and centrally cleared tool, which is important given that they have traditionally been traded on an over-the-counter (OTC) basis,” said William Prajogo, an associate director at SGX Commodities.

Prajogo said that the contracts will also give participants reduced counterparty risk, an elimination of delivery risk, as well as margin offsets with other SGX petrochemical products.

“We look forward to collaborating further with ICIS to further broaden our offering in the petrochemicals space, and building the community of participants in the market,” he added.

MEG players in region said that the newly launched swaps and futures contracts are still in the infancy stage and will take some time before they are fully utilised.

“Its still at the starting state so no trades are done yet,” a MEG broker said.

In the SM market, traders said that the futures and swaps contracts will be a good way to minimise counterparty risks, but this will come with less liquidity.

“It’s a good way for term contract holders to hedge, since many are based off the ICIS weekly CFR China assessment. It will be difficult to hedge spot transactions though,” a  SM trader said.

Another SM trader added that it is “not seeing much interest from the market at the moment…if more Chinese players participate there will be more liquidity”.

With additional reporting by Deborah Lee and Eric Su

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Singapore Exchange Chief Hopes to Win World’s Biggest IPO - Bloomberg

Singapore Exchange Ltd.’s chief executive officer said his company is still in the running to win a listing of the shares of oil giant Aramco, in what could be the world’s biggest initial public offering.

“We’re as good as any other exchange,” Loh Boon Chye said in a Bloomberg Television interview in Riyadh, Saudi Arabia. “We stand as good a chance as any others.”

At least half a dozen exchanges including those in New York, London, Hong Kong, Tokyo and Toronto are vying for a slice of Saudi Arabian Oil Co.’s IPO. The head of the kingdom’s local bourse said earlier this week it’s aiming for exclusive rights to host the share sale.

“For global companies that have a significant global presence, listing beyond one venue allows for wider investor participation,” Loh said.

The planned debut of Aramco next year is a key part of an ambitious economic plan that Crown Prince Mohammed bin Salman proposed to wean the kingdom off its economic dependency on oil. The government has said the sale of 5 percent of the business could value the company at as much as $2 trillion. Analysts have tended to give lower estimates.

New York Stock Exchange CEO Thomas Farley said on Thursday his bourse is still in talks with Aramco about its listing.

SGX’s Loh also said that his exchange had received interest from companies looking to list in part because of rules that allow dual-class shares on his market for secondary listings. He wouldn’t be drawn, however, on whether the bourse will allow multiple share classes for primary listings. The exchange is considering “wide-ranging views” it received in response to a public consultation on the issue, he said.

— With assistance by Anand Menon

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SGX Launches New Index Series, Enabling Exposure to Key Emerging Markets

Given a shifting regulatory climate and the upcoming introduction of new margin requirements on uncleared derivatives on a global basis, Singapore Exchange (SGX) has opted to introduce a new instrument to its offering – a series of Asian emerging markets (EM) index futures. The index series will be the first of its kind in Asia, based on its unique calculations and exposure.

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In particular, the new series will be based on net total return (NTR) indices calculated by MSCI Inc. This is important as it will make SGX the only venue in Asia to effectively offer both price return and NTR versions of MSCI equity index futures via exposure to the new index series. As such, the new EM index futures will aim to provide a more broad-based risk-management service for market participants looking for exposure to Asia’s four largest emerging markets of Taiwan, China, India, and Indonesia, which presently represent over 50% of the MSCI Emerging Markets NTR IndexSM.

New Levels of Exposure into Leading Economies

The EM index series will also help garner an exchange-listed solution to over-the-counter (OTC) equity index swaps in Asia. SGX’s new offering also represents a further bid to enable exposure into Asian markets. It has established itself as one of the region’s principal risk-management hubs. The new contracts themselves will include the follow index futures in each of the aforementioned EM economies:

  • SGX MSCI Taiwan Net Total Return (USD) Index Futures
  • SGX MSCI China Free Net Total Return (USD) Index Futures
  • SGX MSCI India Net Total Return (USD) Index Futures
  • SGX MSCI Indonesia Net Total Return (USD) Index Futures

According to Michael Syn, Head of Derivatives at SGX, in a statement on the new index series: “We continue to offer global investors unique offshore access to Asia, and these futures will provide a cost-efficient platform to trade and clear NTR index products. Today’s launch also highlights the growing importance of central-clearing counterparties in Asian markets.”

SGX recently reported its May volumes, which saw healthy growth across several key segments of its business as well as 2017 highs in terms of its FX trading. Its EM business has also seen strong increases in 2017, including the trading of its FTSE China A50 Index Futures, INR/USD and USD/CNH futures volume, providing a further impetus behind the new series offering.

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Hot stock: iFAST jumps 18% after becoming SGX securities trading and clearing member, Stocks

ONLINE investment products distribution platform iFAST Corporation jumped 18 per cent to S$0.975 as at 3.25pm on Friday, up S$0.15, upon news of it being admitted as a Singapore Exchange securities trading and clearing member.

Cheaper stock trading might be on the way for retail investors.

"The admission will allow iFAST Singapore to launch its stock dealing service in SGX-listed stocks over the next few weeks," said iFAST chairman and chief executive officer Lim Chung Chun in a statement.

Half a year ago, iFAST attempted to launch a platform that would have offered stock trades at a 0.12 per cent commission and a minimum commission of S$10. For exchange-traded funds, the commissions were to be even lower at 0.08 per cent. These rates were significantly lower than the 0.18-0.28 per cent commissions and S$25 minimums offered by existing brokers for online trades.

However, the disruptive attempt was scuttled after appointed counterparty OCBC Securities pulled out, citing a conflict with its existing business.

iFAST counts Singapore Press Holdings, which owns The Business Times, among its shareholders.

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SGX welcomes Sanli Environmental Limited to Catalist

Singapore Exchange (SGX) today welcomed Sanli Environmental Limited to Catalist under the stock code “1E3”.

Sanli Environmental Limited is a Singapore-based environmental engineering company with more than 10 years of experience in water and waste management. Its expertise includes the design, supply, delivery, installation, commissioning, maintenance, repair and overhaul of mechanical and electrical equipment, as well as instrumentation and control systems in wastewater treatment plants, water reclamation plants, NEWater plants, waterworks, service reservoirs, pumping stations and incineration plants.

Sim Hock Heng, CEO of Sanli, said:

Sanli’s successful listing on the Singapore Exchange marks an important milestone for our Group and I would like to extend my heartfelt appreciation to all our shareholders for their support and confidence in Sanli. We believe that this listing will open up new opportunities for us by serving as a platform for Sanli to tap the capital markets to fund our future growth plans, as well as to build Sanli’s brand in Singapore and the ASEAN region.

Mohamed Nasser Ismail, Head of Equity Capital Market (SME) and Head of Capital Market Development, SGX, commented:

We are delighted to welcome the listing of Sanli Environmental Limited, an established water and waste management company that has played a part in ensuring sustainable and quality supply of water in Singapore. We look forward to supporting the company as it brings its expertise into Southeast Asia where there are significant opportunities in the water and waste management infrastructure business.

With a market capitalisation of more than $60 million, the listing of Sanli Environmental Limited brings the total number of companies listed on Catalist to 193, with a combined market capitalisation of more than $12 billion.

Sanli Environmental Limited opened at $0.40 today.

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