Presentation to Asian Mining IndabaFoong Chong LekListings – Mineral, Oil & GasAssociate Director31 October 2012
Contents                                                               Page        1       Overview of Singapore and SGX  ...
Singapore: A Global Financial Centre   World’s Best Place for Doing Business      Wealth hub with largest institutional i...
SGX – A Truly International Exchange       London Stock Exchange                  New York Stock Exchange             Hong...
Diversity of Industries                   Breakdown by Number                                    Breakdown by Market Capit...
Top Sectors on SGX                            Marine and Oil           Asia’s largest cluster of listed companies (44 com...
Trading Asia in One Place                                                                    Asian companies             E...
Deep Market for Capital Raising      Fund-raising in Singapore Proven in Bull & Bear Markets                             ...
Access     Wealth Management Hub of AsiaSGX The Asian Gateway                The Listing Choice in Asia   8
Singapore: Wealth Management Hub of Asia      Over US$1.8 trillion AUM1           – Institutional Funds                  ...
Global Investors in Singapore         Aberdeen Asset Management           JP Morgan         Artisan Partners           ...
Active Retail Investors’ Participation       Singapore retail investors can subscribe for IPOs via 2,000 ATMs            ...
Asian Investors in Singapore      South & Southeast Asia:            – 11,000 Indonesian citizens have custodian accounts...
IPO Market PerformanceSGX The Asian Gateway         The Listing Choice in Asia   13
Strong SGX IPO & Market Performance in 2012      21 out of 24 IPOs this year opened up from       their offer price, with...
Recent IPO Performance     Civmec (oil & gas support)      Listed on SGX on 13 April 2012      Business is heavy constru...
Strong Valuations and Liquidity     Obtain the right value for your businessSGX The Asian Gateway                         ...
Consensus 2012 Estimate PE shows Singapore (13.2x)      has higher valuation than HK (8.4x)       The PE comparison       ...
SGX Mineral, Oil & Gas SectorSGX The Asian Gateway                The Listing Choice in Asia   18
SGX Minerals Sector     Growing cluster with turnover velocity of 159%       Minerals Cluster       Sakari Resources      ...
Turnover Velocity: SGX vs Other Major Markets     High relative annual turnover velocity shows market demand and investor ...
Go further with SGX’s higher turnover velocity     Driven by scarcity value and investor interest, SGX resource stocks hav...
Case Study     Sakari Resources (formerly known as Straits Asia     Resources)SGX The Asian Gateway                       ...
Case Study: Sakari Resources                        Spin off to SGX can unlock value                         Sakari Resou...
Better Liquidity on SGX     Sakari (SGX) vs Bumi plc (LSE) from 4 March 2011- 3 Mar 2012                              1   ...
Better Valuation on SGX     Sakari (SGX) vs Bumi plc (LSE) 1                                               Attributed3    ...
Case Study     CNMC Goldmine Holdings LtdSGX The Asian Gateway             The Listing Choice in Asia   26
Case Study: CNMC Goldmine IPO     Global top performing IPO debut by a gold mine in 2011      Gold exploration and mining...
Key Milestones (based on prospectus)      Formation          – CNMC (HK) incorporated on 28 Oct 2006          – 21 Nov 20...
Case Study     LionGoldSGX The Asian Gateway   The Listing Choice in Asia   29
Case Study: LionGold     Latent market demand for Minerals companies      Listed on SGX in 2005 as Asia Tiger, then subse...
SGX          Your Exchange in AsiaSGX The Asian Gateway             The Listing Choice in Asia   31
SGX Securities Markets                                   Mainboard                       Catalist        Regulatory      E...
Market Oriented Regulatory Framework      Short review process: 6-8 weeks      No restrictions on cornerstone and pre-IP...
Quantitative Criteria                        (a) Minimum pre-tax profit of at least S$30 mn for latest financial year; OR ...
Summary of Mineral Oil & Gas Listing Rules     Principal activity is exploration for or extraction of minerals, oil or gas...
Investor Education to Build the Ecosystem      SGX organises investor education       seminars          – Relevant topics...
Fast Time-to-Market - Equity Issue Timeline     Mainboard Timeline                             6-8 weeks             2 wee...
Index Inclusion      The Straits Times Index (STI) attracts an estimated US$23 billion from tracker funds       (based on...
Lower Trading Costs for Investors      Asia’s lowest trading costs with no stamp duty and no sales tax                   ...
Support and Partnering as a Listed Company              INVESTOR OUTREACH                     CORPORATE ACTIONS           ...
Summary of How You Can Benefit           1            Listing of your company on SGX – get the most of profiling and liqui...
Thank You      For more information, please contact:      Foong Chong Lek      Listings – Mineral, Oil & Gas      chonglek...
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Foong Chong Lek - Singapore Exchange Session - Listing as a Form of Raising Capital for Exploration Companies

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Foong Chong Lek - Singapore Exchange Session - Listing as a Form of Raising Capital for Exploration Companies

  1. 1. Presentation to Asian Mining IndabaFoong Chong LekListings – Mineral, Oil & GasAssociate Director31 October 2012
  2. 2. Contents Page 1 Overview of Singapore and SGX 02 2 Access the Wealth Management Hub of Asia 08 3 IPO Market Performance 13 4 Strong Valuations & Liquidity 16 5 SGX Mineral, Oil & Gas Sector 18 6 Case Studies: Sakari, CNMC and Liongold 22 7 Efficiency to Meet Your Needs 31SGX The Asian Gateway The Listing Choice in Asia 1
  3. 3. Singapore: A Global Financial Centre World’s Best Place for Doing Business  Wealth hub with largest institutional investor base in Asia – >US$1.8 trillion assets under management  Asian logistics centre and maritime hub – World’s largest bunker port and 2nd largest container port  Trading centre for commodities – 300 global trading companies – 90 top global traders globally/regionally headquartered here  World’s 4th largest foreign exchange trading centre – >US$330 billion average daily volume in 2010  Home to global companies – Asia Pacific headquarters to >1/3 of Fortune 500 companiesSGX The Asian Gateway The Listing Choice in Asia 2
  4. 4. SGX – A Truly International Exchange London Stock Exchange New York Stock Exchange Hong Kong Stock Exchange Tokyo Stock Exchange Non-US Non-Japan Non-UK Non-China 0% 7% 24% 2% UK 76% US China Japan 93% 98% 100% Singapore Exchange Country of Origin for Overseas Companies Greater China Japan & Korea, 3% 68% Australia, 3% Europe, 3% 775 Listed Companies, US, 2% Market Capitalisation Non-Singapore 40% Others, 1% US$720 billion Singapore 60% Southeast Asia India 19% 1% Source: Bloomberg & Singapore Exchange , Aug 2012SGX The Asian Gateway The Listing Choice in Asia 3
  5. 5. Diversity of Industries Breakdown by Number Breakdown by Market Capitalization Utilities Basic 1% Materials Utilities 1% Healthcare 1% 2% Technology 1% Healthcare Financials Oil & Gas Technology 3% 14% 5% 9% Telecoms Basic 9% Materials 7% Financials Oil & Gas Consumer 39% Telecoms 4% Goods 1% 9% Consumer Industrials Goods 36% Consumer 15% Services 13% Consumer Services Industrials 10% 20% Source: Bloomberg, by ICB Classification, Jul 2012SGX The Asian Gateway The Listing Choice in Asia 4
  6. 6. Top Sectors on SGX Marine and Oil  Asia’s largest cluster of listed companies (44 companies) & Gas Services  Market Cap: US$50 billion  Sector listings includes three of the world’s six strongest banks (37 companies) Financials  Market Cap: US$169 billion  Asia’s broadest range of REITs covering Asian assets (71 companies) Real Estate  Market Cap: US$96 billion  Innovative Business Trusts offering access to Asian infrastructure investments (11 Infrastructure companies)  Market Cap: US$66 billion  Full range of companies from pharmaceuticals, healthcare services to medical Healthcare devices technology (26 companies)  Market Cap: US$10 billion Resources&  Growth sector including world’s largest palm oil company (34 companies) Commodities  Market Cap: US$47 billion Source: Bloomberg & Singapore Exchange, Jun 2012SGX The Asian Gateway The Listing Choice in Asia 5
  7. 7. Trading Asia in One Place Asian companies Equity Derivatives China and India Commodities Bonds listed in US  Asia’s most  Single point  Only exchange  Large Asian Trading:  Asia’s bond international access to Asian outside China to companies traded  Rubber centre listing venue markets offer futures for on newsflow in  Fuel oil exposure to Asian time zone  Copper  1446 bonds  775 listed  Covering 80% of China’s 50 largest as ADRs  Zinc companies Asia’s equity companies.  Aluminium  30 countries markets  Asia’s leading  Futures contracts OTC Clearing:  10 currencies, ETF venue on India’s largest Rubber including RMB companies Coal Iron Ore  ETFs Freight Energy  BondsSGX The Asian Gateway The Listing Choice in Asia 6
  8. 8. Deep Market for Capital Raising  Fund-raising in Singapore Proven in Bull & Bear Markets 18 Secondary Fundraising 16 IPO Fundraising 14 Funds Raised (US$billion) 12 10.5 5.0 10 15.2 8 2.8 3.5 6 2.7 4 8.3 1.8 5.7 2.9 5.3 5.0 1.7 2 1.4 1.3 3.9 1.4 2.2 2.3 1.1 1.1 1.4 1.5 0 0.3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012/08SGX The Asian Gateway The Listing Choice in Asia 7
  9. 9. Access Wealth Management Hub of AsiaSGX The Asian Gateway The Listing Choice in Asia 8
  10. 10. Singapore: Wealth Management Hub of Asia  Over US$1.8 trillion AUM1 – Institutional Funds >US$1,100 billion – Private Wealth Management >US$400 billion – Temasek and GIC >US$300 billion  Over 2,500 investment professionals  AUM in Hong Kong about US$1.3 trillion2  Worlds largest wealth management centre by 20133 Sources: 1 MAS 2010 Survey report, industry sources, Temasek and GIC annual reports 2011 2 HK SFC 2010 Survey report 3 PWC Global Private Banking and Wealth Management Survey 2011SGX The Asian Gateway The Listing Choice in Asia 9
  11. 11. Global Investors in Singapore  Aberdeen Asset Management  JP Morgan  Artisan Partners  Legg Mason International  Blackrock Fund Management  Legg Mason Global  Blackrock Asset Management  Lion Group Investor  Capital Group Investment  Lion Group Global Investment  Capital Research  Morgan Stanley Investment Management  Credit Sussie Asset Management  Nomura Asset Management  DBS Asset Management  Och-Ziff Capital  Deutsche Asset Management  Prudential Financial  Fidelity International  Schroder Investment Management  Hartford Investments  Temasek Holdings  Invesco Asset Management  UBS Strategy Fund Management  JF Asset Management  UOB Asset Management  JP Morgan  Vanguard Group Source: Bloomberg (Jan 2012)SGX The Asian Gateway The Listing Choice in Asia 10
  12. 12. Active Retail Investors’ Participation  Singapore retail investors can subscribe for IPOs via 2,000 ATMs Amount Public Retail Retail Subscription Company Raised Offer Size (Public Offer only) Amount (US$mn) (US$mn) (US$mn) Subscription Rate HUTCHINSON PORT HOLDINGS 5,500 187 2x 281 MAPLETREE COMMERCIAL TRUST 709 96 5X 525 GLOBAL LOGISTIC PROP LIMITED * 2,111 154 11x 1,689 MAPLETREE INDUSTRIAL TRUST * 655 76 28x 2,108 SABANA SHARIAH COMPLIANT REIT 491 60 12x 739 CACHE LOGISTICS TRUST 304 26 20x 525 SRI TRANG AGRO-INDUSTRY PUBLIC 264 19 1x 21 COMPANY LIMITED** TIGER AIRWAYS HOLDINGS LIMITED 198 13 23x 306 SHENG SIONG GROUP 86 4 6X 21 BUMITAMA AGRI LIMITED 176 9 40x 367 Note: * Both of these listed during the same week of 18 Oct 2010 ** Thai-listed and subsequent dual primary listing SGX; currently at premium to offer price Source: Company announcementsSGX The Asian Gateway The Listing Choice in Asia 11
  13. 13. Asian Investors in Singapore  South & Southeast Asia: – 11,000 Indonesian citizens have custodian accounts with our depository – 170,000 Malaysian citizens have custodian accounts with our depository – 14,000 Indian citizens* have custodian accounts with our depository  China: – QDII funds can invest in Singapore given MOU between MAS and CSRC for examples ChinaAMC Global Selective Fund, China International Fund Management Co Ltd and ICBC Credit Suisse Asset Management Co., Ltd – Prominent Chinese investors in Singapore include Alibaba and Bosera, China Investment Corporation, Sinochem, Petrochina and Huaneng – Chinese citizen may remit up to US$50,000 overseas annually, per State Administration of Foreign Exchange rules and may freely open trading and banking accounts in Singapore – 23,000 Chinese citizens have custodian accounts with our depository * Indian resident investors are allowed to invest up to US$200,000 outside India Note: Bosera is the discretionary manager of certain equity portfolio of the National Council for Social Security Fund of the PRCSGX The Asian Gateway The Listing Choice in Asia 12
  14. 14. IPO Market PerformanceSGX The Asian Gateway The Listing Choice in Asia 13
  15. 15. Strong SGX IPO & Market Performance in 2012  21 out of 24 IPOs this year opened up from their offer price, with opening premiums ranging between 5% and 55%  These 22 IPOs closed with a weighted average return of 11% on their first trading day.  Post IPO, the YTD weighted average return stands at a healthy 17%  As an IPO destination in 2012, SGX offers one of the world’s best performing and stable stock markets, with the STI gained 13.8% till end-Sep 2012, ahead of Nikkei 225, Hang Seng Index, S&P/ASX 200 Index. The STI is also the least volatile over the Source : Bloomberg and SGX, 19 Oct 2012 last year. * Sign up now at www.sgx.com/mygateway to receive our investment updates & economic calendarsSGX The Asian Gateway 14
  16. 16. Recent IPO Performance Civmec (oil & gas support)  Listed on SGX on 13 April 2012  Business is heavy construction and engineering for offshore oil & gas, mining, others  Raised US$32mn with IPO market capitalisation of US$160mn  Opened at a premium of 48% (Issue price of S$0.40)  As of 26 July 2012, trading at a premium of 175%  Turnover of 200% of IPO market cap Geo Energy Resources  Listed on SGX on 19 October 2012  Coal mine owner and operator, based in Kalimantan, Indonesia  Raised US$77million with IPO market capitalisation of US$307million  Attracted subscription monies of S$272 million, which is 2.9 times available shares  Issue price of S$0.325, closed 1st day of trading at S$0.435, a 34% premium  Turnover of S$150mn trades, which is 1.5 times float and 39% of IPO market capSGX The Asian Gateway The Listing Choice in Asia 15
  17. 17. Strong Valuations and Liquidity Obtain the right value for your businessSGX The Asian Gateway The Listing Choice in Asia 16
  18. 18. Consensus 2012 Estimate PE shows Singapore (13.2x) has higher valuation than HK (8.4x) The PE comparison from July 2009 to April 2012, PE of MSCI HK declined from 23.9x to 9.2x while PE of MSCI Singapore was down from 16.1x to 12.7x. Source: Bloomberg, 15 May 2012 Source: Morgan Stanley Research - Asia Macro Report May 2012SGX The Asian Gateway The Listing Choice in Asia 17
  19. 19. SGX Mineral, Oil & Gas SectorSGX The Asian Gateway The Listing Choice in Asia 18
  20. 20. SGX Minerals Sector Growing cluster with turnover velocity of 159% Minerals Cluster Sakari Resources Liongold CNMC Goldmine Holdings AbterraSGX The Asian Gateway The Listing Choice in Asia 19
  21. 21. Turnover Velocity: SGX vs Other Major Markets High relative annual turnover velocity shows market demand and investor interest Market Minerals Annual TOV Australia 82% Canada 131% Hong Kong 33% London 54% Singapore 159% Note: For the period 1 Jun 2011 – 31 May 2012 Sample for Australia, Canada, Hong Kong and London based on ICB Sector classification Source: Bloomberg, SGX dataSGX The Asian Gateway The Listing Choice in Asia 20
  22. 22. Go further with SGX’s higher turnover velocity Driven by scarcity value and investor interest, SGX resource stocks have higher turnover velocity (TOV) vs HKEx Coal Top 3 TOV* Market Cap Gold Top 3 TOV* Market Cap Miners (US$ bn) Explorers** (US$ mn) Sakari 144% 2.1 LionGold 349% 628 (SGX) (SGX) Hidili 120% 0.6 CNMC 318% 125 (HKEx) (SGX) *** Shougang 98% 1.6 G-Resource 49% 924 (HKEx) (HKEx) Note: * TOV is the value of equity traded for the period 1 Jun 2011 – 31 May 2012 divided by the average market capitalisation. ** Gold explorer defined as those gold exploration companies without significant revenue or profit *** CNMC IPO on Catalist was on 28 October 2011. The figure is for the 7 months of trading on IPO market cap base. Source: BloombergSGX The Asian Gateway The Listing Choice in Asia 21
  23. 23. Case Study Sakari Resources (formerly known as Straits Asia Resources)SGX The Asian Gateway The Listing Choice in Asia 22
  24. 24. Case Study: Sakari Resources Spin off to SGX can unlock value  Sakari Resources (SAR, formerly known as Straits Asia Resources) listed on the SGX Mainboard in Nov 2006  SAR is a spin-off of ASX-listed Straits Resources Ltd’s (SRL) Indonesia coal assets  SAR enjoyed a valuation uplift  Sale of 60% SRL’s wholly owned sub SBI (owns 47% of SAR) to PTT in Mar 2009  VGO completed by PTT in Oct 2012, at 27.5% premium 800.0 Rebased to Nov ‘06 prices 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 Straits Asia Resources (SGX) Straits Resource Limited (ASX) FTSE STI S&P ASX 200SGX The Asian Gateway The Listing Choice in Asia 23
  25. 25. Better Liquidity on SGX Sakari (SGX) vs Bumi plc (LSE) from 4 March 2011- 3 Mar 2012 1 Total 12 month traded value Average Market Turnover Velocity # of Analysts Name (US$ bn) Cap (US$ bn) (12 months) Covering 2 Sakari Resources Ltd (SGX)3 3.35 2.27 147% 13 Bumi plc (LSE) 4 0.48 3.50 14% 3 Note: 1. Bumi plc completed the transactions to acquire stakes in Pt Bumi Resources and PT Berau on 4 March 2011 2. Bloomberg and Reuters 7 March 2012. 3. Sakari covered by BofA, CreditSuisse, Goldman, Macquarie, Standard Chartered, Nomura, UBS, CIMB, DMG, EVA, IIFL, OCBC, OSK 4. Bumi plc covered by Nomura, Religare and Liberum Source: Bloomberg, ReutersSGX The Asian Gateway The Listing Choice in Asia 24
  26. 26. Better Valuation on SGX Sakari (SGX) vs Bumi plc (LSE) 1 Attributed3 Attributed Enterprise Reserves 4 Resources5 EV / Reserves EV / Resources Name Value 2 (US$bn) (mn Tons) (mn Ton) (US$ / Ton) (US$ / Ton) Sakari Resources Ltd (SGX) 2.5 116 972 22.1 2.6 Bumi plc (LSE) 3.4 543 2,553 6.2 1.3 Note: 1. Bumi plc is still loss making has not reported full year results yet. Thus we are using EV / Reserve and EV / Resource as metrics 2. Enterprise Value = Market Cap + Net Debt, used market cap on 3 Mar ‘12 and the latest financial statements. For Sakari, this is Full Year 2011 announcement on 14 Feb 2012, while for Bumi plc this is Half Year 2011 announcement on 17 August 2011. 3. Attributed to Bumi plc which owns 29% of PT Bumi Resources and 85% of PT Berau. 4. Reserves are economically mineable. In the above table are the sum of Proven and Probable Reserves. 5. Resources are measured and/or indicated at high and/or reasonable levels of confidence, including Reserves. In the above table this is the sum of Measured and Indicated Resources. Source: Bloomberg, Company Prospectus, Annual Reports, Company AnnouncementsSGX The Asian Gateway The Listing Choice in Asia 25
  27. 27. Case Study CNMC Goldmine Holdings LtdSGX The Asian Gateway The Listing Choice in Asia 26
  28. 28. Case Study: CNMC Goldmine IPO Global top performing IPO debut by a gold mine in 2011  Gold exploration and mining in Sokor, Kelantan, Malaysia  IPO on 28 October 2011 with IPO market cap of S$161mn (issue price S$0.40)  Share price at close of first day of trading was up 24%  Turnover on first day of trading was 30% of IPO market cap  In the 7 months since listing, turnover is 318% of IPO market cap. No PE as loss making and free float of 35% (Bloomberg)  IPO resource base of 148koz . Increase to 302koz (Nov ‘11), then 407koz (Apr ‘12) CNMC Share Price Since IPO S$0.60 S$0.55 S$0.50 S$0.45 S$0.40 S$0.35 Valuation uplifts on IPO debut S$0.30 Closing PriceSGX The Asian Gateway The Listing Choice in Asia 27
  29. 29. Key Milestones (based on prospectus)  Formation – CNMC (HK) incorporated on 28 Oct 2006 – 21 Nov 2007 & 20 Jun 2009 subscription of shares by key directors / founders  Pre-IPO round (28 Oct 2009 – 15 Nov 2010): – entered into several convertible loans with pre-IPO investors – Total S$6.35 mn – Allotment of shares on 9 July 2010 and 14 Oct 2011  Restructuring – CNMC (HK) acquired by CNMC Goldmine Holdings Ltd (to be listed) on 9 Oct 2011 – IPO on 28 Oct 2011 – Pre-IPO investors received ~S$13.6 mn value of shares at IPO price of S$0.40 – Absolute return of 2.1x, or a discount of ~53% to IPO priceSGX The Asian Gateway The Listing Choice in Asia 28
  30. 30. Case Study LionGoldSGX The Asian Gateway The Listing Choice in Asia 29
  31. 31. Case Study: LionGold Latent market demand for Minerals companies  Listed on SGX in 2005 as Asia Tiger, then subsequently changed name twice  Acquired gold concessions in Mali in Dec 2010 for US$35mn  Market capitalisation jumped by over US$200mn (Jun ‘12: US$670mn, price S$1.00)  Annual turnover velocity of 350%, no PE, free float of 73% (Bloomberg)  Acquired Signature Metals (Mar ‘12), bid for Castlemaine (Apr ‘12), Brimstone (Jun ‘12) and Republic Gold (Jun ‘12)  Concessions include those in Ghana, Mali and Mongolia LionGold Share Price S$0.85 Market Cap increase of over US$200mn S$0.75 S$0.65 S$0.55 Acquired concessions (US$35mn) S$0.45 S$0.35 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11SGX The Asian Gateway The Listing Choice in Asia 30
  32. 32. SGX Your Exchange in AsiaSGX The Asian Gateway The Listing Choice in Asia 31
  33. 33. SGX Securities Markets Mainboard Catalist Regulatory Exchange-regulated Exchange-regulated, Approach & supervised Sponsor-supervised Target Companies Established Companies Fast-Growing Companies IPO Review & Post-IPO Exchange Sponsors Supervision  Established branding Key  Access to a wider range of  Faster time to market Benefits institutional investors  Easier corporate actions  More product typesSGX The Asian Gateway The Listing Choice in Asia 32
  34. 34. Market Oriented Regulatory Framework  Short review process: 6-8 weeks  No restrictions on cornerstone and pre-IPO investors partaking in public offer  No requirement on public tranche offering allocation  No minimum profit requirement  No restrictions on paid-up capital  Minimum public float of between 12-25%  For secondary fund raising, issuers may issue up to 50% of issued capital under the share issue mandate  Prospectus only need be in EnglishSGX The Asian Gateway The Listing Choice in Asia 33
  35. 35. Quantitative Criteria (a) Minimum pre-tax profit of at least S$30 mn for latest financial year; OR (b) Profitable in latest financial year with operating track record of 3 years and market capitalisation of at least S$150 mn; OR Mainboard (c) Positive operating revenue in the latest financial year and a market Quantitative capitalisation of at least S$300 mn Criteria AND must have minimum IPO share price of S$0.50 Mineral, Oil & Gas (MOG) explorers with adequate resource yet without financial track record can gain admission via the MOG listing rules (a) No quantitative requirement (Sponsor prescribes in-house criteria) Catalist Quantitative Mineral, Oil & Gas (MOG) explorers with adequate resource yet without financial Criteria track record can gain admission via the MOG listing rulesSGX The Asian Gateway The Listing Choice in Asia 34
  36. 36. Summary of Mineral Oil & Gas Listing Rules Principal activity is exploration for or extraction of minerals, oil or gas (MOG)  Criteria for Admission – No revenue or profit requirements – For minerals companies, established “indicated resources” – For oil & gas companies, established "contingent resources” – For Mainboard, market cap of at least S$300mn  Qualified Persons Report – Not older than 6 months before date of lodgment – Qualified Person professionally qualified, with at least 5 years relevant experience, and a member/licensee of a self-regulatory professional organisation  Accepted Technical Standard: JORC, NI43101-PERC, SPE-PRMS – Valuation: VALMIN  Other requirements (see rules): – Working Capital Requirement of 18 months from date of lodgment – For Mainboard, an independent director with appropriate industry experience & expertiseSGX The Asian Gateway The Listing Choice in Asia 35
  37. 37. Investor Education to Build the Ecosystem  SGX organises investor education seminars – Relevant topics in Minerals, or Oil & Gas – Target audience is Investors (retail & professional), analysts, media, remisiers, regulators, bankers, etc. – Short sessions, free attendance, usually held at SGX Auditorium  Noteworthy sessions and speakers – Peter Stoker, Chairman of JORC, on “Intro to Minerals Industry” – Barney Guarnera, Chairman of Behre Dolbear on “Gold Exploration & Mining” – Other topics: Coal Exploration & Mining, Valuation of Minerals Companies, etc. – More than 2,600 attendeesSGX The Asian Gateway The Listing Choice in Asia 36
  38. 38. Fast Time-to-Market - Equity Issue Timeline Mainboard Timeline 6-8 weeks 2 weeks 1 - 2 weeks Lodgment and Registration Trading SGX & MAS Pre-consult Public Exposure Concurrent Review & Launch Commences on OPERA Catalist Timeline 4 weeks 2 weeks 1 - 2 weeks Lodgment and Registration Trading Notification to SGX Public Exposure & Launch Commences on CatalodgeSGX The Asian Gateway The Listing Choice in Asia 37
  39. 39. Index Inclusion  The Straits Times Index (STI) attracts an estimated US$23 billion from tracker funds (based on industry estimate of 9% of free float), and inclusion into STI would invite liquidity from such funds  Secondary listings can be included in the benchmark Straits Times Index (STI)  An issuer can be fast tracked into STI at close of first trading day if its market cap exceeds 2% of that of FTSE ST All-Share Index  Half yearly review for otherwise new admission into STI Key criteria for STI inclusion:  Largest 30 companies by market capitalisation  More than 15% free float (across all fungible markets)  At least 0.05% turnover (median daily trade per month)SGX The Asian Gateway The Listing Choice in Asia 38
  40. 40. Lower Trading Costs for Investors  Asia’s lowest trading costs with no stamp duty and no sales tax Cost of securities trading 12 10 Total Fees (bps) 8 Tax 6 Broker Commission 4 Exchange Fees 2 0 Singapore Hong Kong In Hong Kong, a US$10 billion company with 100% annual turnover velocity will cost its investors US$20 million in stamp duties. No such stamp duties are charged in Singapore.SGX The Asian Gateway The Listing Choice in Asia 39
  41. 41. Support and Partnering as a Listed Company INVESTOR OUTREACH CORPORATE ACTIONS BOARD EXCELLENCE Company Research Dividend Distribution Board Effectiveness Service (S&P - SERI Plus) (CDP) (Heidrick & Struggles) Capital Raising Corporate Intelligence Board Management Tool (CDP - Rights issue/bonus issue/stock (NASDAQ- CI) (NASDAQ – Directors Desk) splits/share buyback/private placement) Investor Relations Website Hosting Shareholding Services Board D&O Survey (NASDAQ – Web360) (CDP) (AON) Media Solutions Corporate Governance Education Proxy and Poll Voting (NASDAQ - Audio/Video; Programs (Broadridge) Xpress Holdings – Print/Bind) (Singapore Institute of Directors) Corporate News Distribution (NASDAQ – GlobeNewsWire) Investor Road Shows (SGX, UBS & DBS)SGX The Asian Gateway The Listing Choice in Asia 40
  42. 42. Summary of How You Can Benefit 1 Listing of your company on SGX – get the most of profiling and liquidity 2 Conduct Investor Education to raise your profile 3 Be available to serve as an Independent Director 4 Base your equity research analysts in Singapore 5 Base your professional services (geology, mining engineering, valuation)SGX The Asian Gateway 41
  43. 43. Thank You For more information, please contact: Foong Chong Lek Listings – Mineral, Oil & Gas chonglek.foong@sgx.com (65) 6236 8280 Singapore Exchange • London • Tokyo • Beijing 2 Shenton Way, #19-00 SGX Centre 1, Singapore 068804 Main: (65) 6236 8888 Fax: (65) 6535 6994 This presentation is being made available to certain authorized recipients for their general information only. While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Neither SGX nor any of its affiliates shall be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The information in this presentation is subject to change without notice. Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility and liability arising in connection with any unauthorised recirculation, transmission or distribution of this presentation or any part thereof. © SGX Ltd, November 2010 www.sgx.comSGX The Asian Gateway The Listing Choice in Asia 42
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