SGX introduces new Mainboard MOG rules

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CNPupdate

 

SGX introduces new Mainboard MOG rules


Date Published: 2 September 2013


Authors and Contributors: Stephen SohTan Min-Li, Gregory Chan and Lincoln Tan.




 

On 5 September 2013, the Singapore Exchange (“SGX“) announced new Mainboard admission rules and continuing listing obligations for mineral, oil and gas (“MOG“) companies. These rules will be effective from 27 September 2013 and take into account suggestions to SGX during their public consultation, concluded in July 2012. The relevant Catalist board MOG rules, which were first introduced in September 2011, will also be amended. According to SGX, the new rules seek to better safeguard investors’ interests given the technical and specialized nature of the MOG industry. Salient features of the new rules are:

  1. MOG listing aspirants that are not in production have to satisfy the following conditions:
    • Have a market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital, and
    • Disclose plans, milestones and capital expenditure to advance to the production stage.
  2. General requirements for all MOG listing aspirants whether in production stage or otherwise:
    • Have at least achieved Indicated Resources (for Minerals) or Contingent Resources (for Oil & Gas)
    • Have sufficient working capital for 18 months from listing
    • Have at least one independent director with appropriate industry experience and expertise
    • Appoint an audit firm with the relevant industry experience
  3. Other disclosures required of MOG companies
    • Include a valuation report on its reserves in the offer document
    • Provide an independent qualified person report for reporting of significant resource or reserve

Transitional arrangements have also been provided by SGX to facilitate existing Mainboard-listed MOG companies’ compliance with the new continuing listing obligations.

The above summary is extracted from SGX’s news release on 5 September 2013. For further details on the new rules and transitional arrangements, please refer to www.sgx.com.


Disclaimer: This update is provided to you for general information and should not be relied upon as legal advice.

 

CNPLaw’s Corporate Finance – Capital Markets Lawyers

Tan Min Li legal Partner at CNPLaw LLP image
Partner

Min-Li’s principal areas of expertise are in corporate and financial services. For 2018 and 2019, she was recognised as Singapore’s Top 100 private practice lawyers by Asia Business Law Journal. She is also rated as “Highly Regarded” and ranked as a “Distinguished Practitioner” for Capital Markets by IFLR1000 and Asialaw Leading Lawyers respectively for 2020.




Stephen Soh Legal Parnter at CNPLaw LLP image

Partner

Stephen has more than two decades of experience, acquired both in-house and in private practice. For 2020, IFLR1000 has rated him as a “Notable Practitioner” for Capital Markets (Equity).



Having handled transactions for numerous local and foreign companies across Asia, extending across a wide range of businesses and industries, we have accumulated significant experience advising on an extensive range of corporate finance transactions.




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