Information on IPO in

Singapore

• PROFILE OF SINGAPORE EXCHANGE

• LISTING REQUIREMENTS

A Pan-Asian Market Number of Listings

As at end Sep 2000

37481.7%

8418.3%

Mainboard

SESDAQ

Foreign EnterprisesShare of Capitalisation

As at end Sep 2000

274.6767.8%

130.5532.2%

Singapore

Foreign

Sectoral Classification of Companies listed on SGX

Finance11%

Construction8%

Properties6%

Services8%

Hotels/Restaurants

4%

Commerce14%

Electricity/Gas/Water

0%

Agriculture1%

Multi-Industry4%

Manufacturing38%

Transport/Storage/Communication

6%

The manufacturing sector includes the electronics sector

A Pan-Asian Market Number of 1999 IPOs

For year ended Dec 1999

4078.4%

1121.6%

Singapore

Foreign

A Pan-Asian Market 1999 IPO Proceeds

For year ended Dec 1999

S$2,136.1762.8%

S$1,264.4437.2%

Singapore

Foreign

Year 2000 Foreign Listings

• Philippines– Ionics

• PRC– Cytech Software

• Malaysia– Nucleus

– PK Tech

• New Zealand- Brierley

• Australia– Easycall

• Hong Kong– Kingboard– I-Comm Technology– Kyosha– Lafe Technology– Giant Wireless– North 22– FDS– Jadason

• United States– Reed Group

9

12

10

9

25

2

4

0 5 10 15 20 25

2 - 6 mil

6 - 10 mil

10 - 14 mil

14 - 20 mil

20 - 100 mil

100 - 200 mil

200 - 600 mil

Funds Raised By Companies listed in 2000

Number of companies

Funds Raised (S$)

Market Capitalisation of Companies listed in 2000

4

41

14

9

3

0 10 20 30 40 50

14 - 20 mil

20-100 mil

100 mil-2 bil

2-10 bil

10-30 bil

Number of companies

Market Cap (S$)

Jan-

97F

eb-9

7M

ar-9

7A

pr-9

7M

ay-9

7Ju

n-97

Jul-9

7A

ug-9

7S

ep-9

7O

ct-9

7N

ov-9

7D

ec-9

7Ja

n-98

Feb

-98

Mar

-98

Apr

-98

May

-98

Jun-

98Ju

l-98

Aug

-98

Sep

-98

Oct

-98

Nov

-98

Dec

-98

Jan-

99F

eb-9

9M

ar-9

9A

pr-9

9M

ay-9

9Ju

n-99

Jul-9

9A

ug-9

9S

ep-9

9O

ct-9

9N

ov-9

9D

ec-9

9Ja

n-00

Feb

-00

Mar

-00

Apr

-00

May

-00

0.0%

50.0%

100.0%

150.0%Australia

Hong Kong

Singapore

Tokyo

KLSE

Turnover Velocity

Source: Federation Internationale Des Bourses De Valeurs

Dollar Turnover/Market Cap

Ease & Efficiency of Trading

• Overseas investors can trade SGX listed shares through the Internet

• Announcements by listed companies are available real time on the SGX website

• A T+3 settlement period for trades done

• Establishment of an electronic link with Australian Stock Exchange to cross trade SGX and Australian listed stocks

• Joint Venture with Amex to trade Amex listed exchange traded funds on SGX

• MOU with NSE and IISL to trade futures contracts based on S&P CNX Nifty Index

MEASURES TO ATTRACTGLOBAL PARTICIPATION

MEASURES TO ATTRACTGLOBAL PARTICIPATION

• July 2000 : - Opened the membership for new clearing

members to perform trading & clearing services

- Allow dual membership of both securities & derivatives markets

• October 2000: Brokerage rates are now freely negotiable

Flexible Rules…

Accounting Standards

• Singapore Statement of Accounting Standards

• International Accounting Standards

• US GAAP

Domicile & Base of Operations

• Free choice of domicile of listed company– Eg. Bermuda … [Non exhaustive]

• No need for operations in Singapore

• Two independent directors, one resident in Singapore

Choice of Currency

• Free choice of trading currency.Some of the more popular choices among foreign companies:

– S$– US$– HK$ .. (non-exhaustive)

• Choice of functional and/or reporting currency: – S$– US$– Rupee .. (non-exhaustive)

Investor Confidence

• International standard of disclosure and corporate governance

• Well regulated financial intermediaries

• Sound financial system

Resilience Index‘Asian economies’ vulnerability to a US slowing

00.20.40.60.8

11.2

Source: SocGen Securities Research (May 2000)

Ease of Access to Capital Market

• Strong presence of foreign & local fund managers

(664 fund managers & 249 investment analysts)• Total funds managed (End of 1999) =S$246.2

billion• Venture Capital Funds (1999)

Raised = $1.4 billion

Managed = $10.2 billion

Availability of Funds

• PROFILE OF SINGAPORE EXCHANGE

• LISTING REQUIREMENTS

SGX-Mainboard Listing CriteriaAlternative 1 Alternative 2 Alternative 3

Pre-tax profit S$7.5m over3 years;S$1 m peryear

S$10 m in 1or 2 years

Nil

Market Cap Nil Nil S$80m

Shareholdingspread

25% (10% to 25% if Market Cap>S$300m) held by 1000 shareholders

Primary listing: waiver from continuing listing obligationsif also listed on a recognised international foreign exchange

Moratorium (Lock-up)

Promoters: - Controlling shareholders and their associates - Executive directors who own 5% or more upon listing

• Vendor share sales allowed at IPO

Why list overseas?

•Need global currency for overseas expansions or acquisitions

•Allows foreigners to invest in your shares

•Ability to grant employee share options to employees abroad

•Attract funds from Non-Resident Indians

•Raise profile of company abroad

Cost of Listing on SGX

• Initial Listings Fees: maximum of US$11,700

• Annual Listing Fees: maximum of US$1,170

• Generally Total Cost of Listing = 5% of proceeds raised

Stock Exchange Profile

Singapore Exchange offers…

• A Pan-Asian market• Well regulated, stable and transparent • Access to liquidity & capital• Accessible market & flexible rules

• Low issuance cost

...In comparison, proportion of foreign companies listed on HKSE

Domestic98%

Foreign2%

Domestic

Foreign

As at end Aug 2000

Rule Advantages..

• Comprehensive listing criteria

• Flexible rules

• Equal treatment with local companies

• Choice of listing currency

Flexible Listings Options

• List on SGX to raise capital to build out business model in Asia

• Enable foreign investors to invest in your shares round the clock

• Access investors both in US and Asia in two steps to enhance fund raising

SGX Then NASDAQ/NASDAQ Then SGX

Simultaneous SGX & NASDAQ

• Business model sufficiently developed for US market

• Obtain US valuation, access liquidity both in US and Asia

• Avoid becoming orphan stock on NASDAQ• Lower listing cost- one prospectus for both=> Access investors simultaneously in US and

Asia to enhance liquidity, valuation and minimise listing cost

Share Price Performance on NASDAQ vs SGX

Au

g 1

99

9

Se

p 1

99

9

Oc

t 1

99

9

No

v 1

99

9

De

c 1

99

9

Ja

n 2

00

0

Fe

b 2

00

0

Ma

r 2

00

0

Ap

r 2

00

0

Ma

y 2

00

0

Ju

ne

20

00

Ju

l 20

00

Au

g 2

00

0

0

5

10

15

20

25

30

35

Sha

re P

rice

(US

$)

Creative NASDAQ price

Creative SGX price

ST Ass Nasdaq price

ST Ass SGX price

CSM NASDAQ price

CSM SGX price

CSM Volume Traded on NASDAQ vs SGX

(adjusted for the difference in number of shares offered in the 2 markets)

Total invitation: 250 mil sharesUS & International offering : 225 mil sharesSingapore offering : 25 mil shares (10% of total invitation)

No

v 99

Dec

99

Jan

00

Feb

00

Mar

00

Ap

r 00

May

00

Jun

00

Jul 0

0

Au

g 0

0

0

10

20

30

40

50

Milli

ons

Vol

ume

Trad

edCSM NASDAQ vol

CSM SGX vol

ST Assembly Volume Traded on NASDAQ vs SGX

(adjusted for the difference in number of shares offered in the 2 markets)

Total invitation size : 170 mil sharesUS & international offering : 153 mil sharesSingapore offering : 17 mil shares (10% of total invitation)

Jan 00 Feb 00 Mar 00 Apr 00 May 00 Jun 00 Jul 00 Aug 000

10

20

30

40

50

60

70

80

Mill

ions

Vol

ume

Tra

ded

ST Ass NASDAQ vol

ST Ass SGX vol

Thank You

SGX website: www.sgx.com