Asia: Singapore Exchange goes public

Singapore Exchange went public at the end of November, offering 278 million shares to institutional and retail buyers and placing an additional 150 million shares with strategic investors in the United States and elsewhere. The $158 mil lion proceed went into a government fund. The exchange has 1

The company was tormea ny inc December 1999 merger of the Stock Exchange of Singapore and the Singapore International Monetary Exchange, a derivatives exchange.

The offering, led by local DBS Group and Merrill Lynch, valued the exchange at $625 million. The Singapore government kept a 25% stake. Another 28% is held by the members of the merged exchanges.

The new shares were priced at the top of their projected range and rose to a 22% premium on their first day of trading, as investors were attracted in part by the exchange's intention to pay half its net profit in dividends. The volume of 219 million shares was a record for any issue on its first day of trading on the exchange.

The exchange went public as part of Singapore's liberalization of financial markets. Exchange officials say the broadened shareholder base will enable it to enjoy the flexibility available to any listed company in terms of capital structure and finance, as well as mergers and acquisitions.

The exchange already has a link with the Australian Stock Exchange and is hoping to enter into more alliances or even acquire other exchanges. Following Australia and Hong Kong, Singapore is the third Asian stock market to become a listed company.