Retaining homegrown companies to list on the SGX and attracting more IPOs is on the wish list of Singapore. While safeguards are needed, it is even more crucial that Singapore be open to innovative structures to maintain its relevance as an international stock exchange. “The Singapore Securities Exchange wants to attract companies looking for the best in class international stock exchange to list in,” says Ms Stefanie Yuen Thio, joint managing Director.

“The US has allowed dual class shares for many years. I believe that Singapore is ready for this, with the appropriate safeguard in place. Good candidates for dual class shares are those in the tech, fintech and biomedical sectors, where traditional valuation models do not work. For example, a company like Facebook needed to cut a hefty equity cheque to acquire Whatsapp. Dual class shares should also only be allowed for large cap companies, where a wider shareholding spread and more sophisticated international investors will be able to hold the management accountable.”

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