Singapore Exchange (SGX)

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Baltic Exchange shareholders vote in favour of acquisition by SGX

Singapore Exchange (SGX) is pleased to announce that the shareholders of The Baltic Exchange Limited (Baltic Exchange) have today approved all the resolutions required in connection with the proposed scheme of arrangement (“Scheme”) for the acquisition of the Baltic Exchange.

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Baltic Exchange shareholders vote in favour of acquisition by SGX

Singapore Exchange (SGX) is pleased to announce that the shareholders of The Baltic Exchange Limited (Baltic Exchange) have today approved all the resolutions required in connection with the proposed scheme of arrangement (“Scheme”) for the acquisition of the Baltic Exchange.

Update on SGX's proposed acquisition of the Baltic Exchange 

Singapore Exchange announced that a Court hearing has been fixed for 7 November 2016 to sanction the proposed scheme of arrangement under Part 26 of the UK Companies Act for the acquisition of The Baltic Exchange Limited. 

This follows approval by the Financial Conduct Authority on 13 October 2016 of the proposed change of control of Baltic Exchange Derivatives Trading Limited, the regulated entity of the Baltic Exchange. The transaction is expected to be completed by end-November 2016.

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SGX welcomes ECL Finance’s inaugural Masala bond listing

Singapore Exchange (SGX) today welcomed the inaugural rupee­ denominated or Masala bond listing of ECL Finance Limited, a Mumbai­ based financial services company.

ECL Finance raised Rs. 5.02 billion from its Masala bond, which has a tenor of three years and two months and was priced at 9.05%. A subsidiary of Edelweiss Financial Services Limited, an Indian non­banking financial company engaged in providing credit services, ECL Finance plans to use the proceeds to pay existing debt and support business growth.

More than 80% of listed offshore bonds by Indian issuers are listed on SGX today, raising about US$66 billion

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Straits Times Index (STI) quarterly review

FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index, following the December quarterly review.

The next review will take place on 2 March 2017.

The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Suntec REIT, Mapletree Commercial Trust, Keppel REIT, First Resources and Singapore Post. Companies on the reserve list will replace any constituents that become ineligible as a result of corporate actions

[weijian]

The "Asian Gateway" works when there are inefficiencies in the home countries - for eg. The onshore currency controls that cause traders to speculate ringgit NDFs or FTSE China A50 Index Futures on the SGX derivative system. If these home countries fulfill their own potential, will SGX (and SG at large) still be able to punch above its weight?

Modi to Open 16-Storey Exchange to Rival Singapore and Hong Kong
Prime Minister Narendra Modi is set to inaugurate an international exchange in Gujarat state’s new finance zone, seeking to grab some of India’s $48 billion in offshore banking activities from Singapore, Dubai and Hong Kong.

https://www.bloomberg.com/news/articles/...pore-dubai

[weijian]

SGX is selling all its shares for BSE's IPO and will receive ~42.8mil sgd. To recap, SGX bought a 5% stake in BSE in 2007 for 42.7mil usd (or 65mil sgd based on 2007 exchange rate of USD:SGD 1.52). This translates to a total loss of 65-42.8 = 22.2mil sgd (34%), assuming that no dividends/capital returns were given during this period.

The INR (Indian Rupee) has depreciated from 27 to 48 rupees in the last 10 years, or lost 77% of its value against the sgd.

The 34% loss on BSE is fully driven by adverse FX effects. Excluding FX effects, the investment would have been profitable but the XIRR would only be in the low single digits at best. Partly, this demonstrates the perils of buying at market peaks (on hindsight), and is reminiscence of Tokyo Stock Exchange (TSE)'s purchase of SGX at ~10sgd/share, which would have only broken even this year, after 10years of dividends based on current market prices.

BSE LIMITED's INITIAL PUBLIC OFFER
http://infopub.sgx.com/Apps?A=COW_CorpAn...585b8a85da

https://www.finextra.com/pressarticle/13...k-exchange

http://www.financeasia.com/News/83877,to...n-sgx.aspx

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Singapore Said to Plan Slew of Incentives to Lure Aramco Listing

Singapore is considering a range of measures to lure a listing from energy giant Saudi Arabian Oil Co., according to people familiar with the matter, as global exchanges compete for a slice of what could be the world’s largest-ever initial public offering.

The island nation is studying proposals including inviting one of its state investment companies to become a cornerstone investor in Aramco’s IPO, as well as potential Singapore cooperation with the Saudi government on future investments, the people said. Singapore Exchange Ltd. management including Chief Executive Officer Loh Boon Chye visited Saudi Arabia late last year to pitch a listing on the bourse, according to the people, who asked not to be identified as the information is private.

Singapore, the biggest oil trading center in Asia, is hoping a full package of government incentives will give it a better chance of winning a piece of the listing than a standalone proposal from the stock exchange, the people said. Aramco is yet to make a final decision on the venue for the IPO, and Singapore faces challenges from larger international exchanges, the people said.

More details in https://www.bloomberg.com/news/articles/...co-listing

[weijian]

SGX started Singapore SLInG (short for SGX LNG Index Group) ~1.5years ago.

Asian LNG price benchmark might be slow to take off: Vitol

IT might take a longer time for a liquefied natural gas (LNG) price benchmark to take off in Asia because Asians are not used to leading in price setting, according to one of the largest independent traders in the super-chilled fuel. "In the energy space, Asian consumers are still price-takers; they don't want to lead the market," said Kho Hui Meng, the Asian chief for Vitol, the largest independent oil trader in the world. Mr Kho pointed, as an example, to how oil futures have always struggled to take off in Asia. The Singapore Exchange's (SGX) fuel oil futures have seen little interest for years. China, which had been hoping to establish its own crude futures contract on the Shanghai International Energy Exchange and was working on these plans for a few years, has quietly shelved them due to market resistance, Reuters reported late last month.

http://www.businesstimes.com.sg/energy-c...-off-vitol

[weijian]

The last truly big name secondary listing was Prudential, back in 2010 almost 7 years ago.

http://www.sgx.com/wps/portal/sgxweb/hom...y_listings

Singapore Exchange holds talks with Saudi Aramco on secondary listing: sources

[SINGAPORE] Singapore Exchange has held talks with Saudi Aramco on a secondary listing, two sources familiar with the matter said on Monday, after the oil and gas company suggested last week it would likely list on more than one exchange.

The planned listing next year of up to 5 per cent of Aramco is expected to be the world's biggest initial public offer (IPO). Saudi Energy Minister Khalid al-Falih said last week the company was evaluating concurrent listings on more than one exchange.

The two sources told Reuters that the talks with SGX were still at an early stage, with Aramco reviewing several markets including New York, London, Hong Kong and Japan.

"This transaction is very open and in the public space. The key thing is there is quite a bit of time for due diligence and SGX is keen to play up its international appeal in this sector,"said one source.

[weijian]

High probability a done-deal IMO.

SGX consults public on dual class share structure

Singapore Exchange (SGX) is consulting the public on whether a dual class share (DCS) structure where certain shares have higher voting rights than others, should be introduced and if so, what safeguards might be appropriate. DCS structures may be utilised by entrepreneurs and companies to increase flexibility in capital management, and to provide greater investor choice while supporting Singapore’s economic transformation. The Committee on the Future Economy (CFE) has also recommended exploring the merits of the DCS structures as DCS listings are increasingly being considered by companies in high-technology industries.

http://infopub.sgx.com/FileOpen/20170216...eID=439462