Going public on the Singapore Exchange (SGX) is one of the most transformative steps a business can take. It offers access to new capital, enhances visibility, and builds credibility with investors, customers, and partners. However, the path to an Initial Public Offering (IPO) can seem complex, involving multiple stages, strict regulatory requirements, and detailed due diligence.
This guide breaks down the SGX IPO process into a clear timeline, from the initial decision to go public to the exciting debut on the trading floor. Understanding this journey helps companies prepare effectively, avoid common pitfalls, and maximize the benefits of listing on one of Asia’s most respected capital markets.
Phase 1: The Decision to Go Public (6–18 Months Before Listing)
The IPO journey begins long before any formal submission to SGX. At this stage, the company’s leadership must assess whether going public aligns with its long-term goals.
Key Considerations
Strategic Objectives: Why go public? Common reasons include raising capital for expansion, strengthening a brand's reputation, or providing liquidity to early investors.
Readiness Assessment: Evaluate financial performance, governance standards, internal controls, and business sustainability.
Board and Shareholder Approval: The decision to list must be formally approved by the board and supported by major shareholders.
Many companies engage an Issue Manager (for Mainboard listings) or a Sponsor (for Catalist listings) at this stage to perform a pre-IPO diagnostic, identifying areas that require improvement before proceeding.
Phase 2: Appointing Your IPO Advisory Team (6–12 Months Before Listing)
Once the decision to list is made, assembling a capable IPO advisory team becomes the next priority.
Key Advisors Include:
Issue Manager or Sponsor: Leads and coordinates the IPO process.
Legal Advisors: Handle compliance, contracts, and drafting of prospectuses.
Auditors and Reporting Accountants: Ensure the accuracy and compliance of financial statements.
Independent Valuers: Provide fair valuation of assets and business units.
Public Relations (PR) and Investor Relations (IR) Teams: Craft and manage the IPO narrative.
Engaging experienced advisors early helps streamline the process, avoid regulatory surprises, and strengthen investor confidence.
Phase 3: Due Diligence and Restructuring (3–9 Months Before Listing)
Before a company can list, it must go through extensive due diligence, a comprehensive review of its business, financials, and legal structure.
What Happens During This Stage
Legal Due Diligence: Verifies ownership, contracts, and intellectual property rights.
Financial Due Diligence: Auditors review past financial statements for accuracy and compliance with Singapore Financial Reporting Standards (SFRS).
Corporate Restructuring: The company may need to consolidate subsidiaries, establish a holding company, or refine its governance structure.
Tax and Regulatory Review: Advisors ensure that all tax filings and licenses are up to date.
This phase is also when management begins preparing the prospectus, a detailed disclosure document required by SGX and the Monetary Authority of Singapore (MAS). The prospectus provides investors with key information about the company’s operations, financial performance, risks, and plans.
Phase 4: Preparing and Submitting the Application (2–4 Months Before Listing)
With due diligence complete, the company and its advisors proceed toward submitting a formal application.
Submission Process
Lodgment of Draft Prospectus: The Issue Manager or Sponsor submits a draft to SGX and MAS for review.
Feedback and Clarifications: Regulators may request revisions to ensure complete transparency and compliance.
Approval in Principle (AIP): Once SGX is satisfied, it issues an AIP, a conditional approval that allows the company to proceed with marketing and final preparations.
At this stage, the company also finalizes its corporate governance structure, appoints independent directors, and ensures adherence to the Singapore Code of Corporate Governance.
Phase 5: Marketing and Book-Building (1–2 Months Before Listing)
With the AIP in hand, the IPO moves into the marketing phase, often referred to as the roadshow.
What Happens Now
Investor Roadshows: The company’s management presents to institutional and retail investors, highlighting its strengths, strategy, and growth potential.
Book-Building Process: Underwriters gauge investor demand and determine the optimal pricing range for the shares.
Public Communications: The PR and IR teams release press materials, conduct interviews, and secure media coverage to generate excitement and establish trust.
A well-executed marketing campaign can make a significant difference in the IPO’s success, influencing both pricing and post-listing performance.
Phase 6: Pricing, Allotment, and Listing Day (Week of the IPO)
This is the most exciting part of the journey, the transition from private to public.
Final Steps
Pricing and Allotment: Based on investor demand, the final offer price is set. Shares are then allocated to institutional and retail investors.
Final Prospectus Lodgment: The approved prospectus is registered with MAS.
Trading Commencement: The company’s shares officially debut on the SGX Mainboard or Catalist.
On listing day, senior management often participates in the Opening Bell Ceremony at SGX Centre, a symbolic moment that marks the company’s official entry into public markets.
Phase 7: Post-Listing Obligations (Ongoing)
Going public is not the end of the journey; it’s the beginning of a new chapter. Once listed, the company must comply with ongoing regulatory and governance obligations.
Key Post-IPO Responsibilities
Regular Reporting: Quarterly or semi-annual financial results must be disclosed to SGX and shareholders.
Corporate Governance: Maintain transparency, board independence, and ethical standards.
Investor Relations: Continuous engagement with investors and analysts helps sustain confidence and trading volume.
Strategic Growth: Use IPO proceeds effectively to drive expansion and meet business objectives.
Strong post-listing performance is essential to maintaining share value and attracting long-term investors.
Conclusion: Clarity and Preparation Lead to IPO Success
The SGX IPO process may seem daunting, but with the proper preparation and advisory support, it becomes a structured and achievable journey. Every phase, from readiness assessment to public debut, plays a vital role in ensuring compliance, transparency, and investor trust.
Whether you’re listing on the Mainboard or the Catalist, success comes down to one principle: plan early, engage the right experts, and communicate your story effectively. With discipline and vision, your IPO can mark not just a listing milestone, but the beginning of a powerful growth era for your company.