SGX plans to raise proportion of IPO shares available to retail investors

SINGAPORE: The Singapore Exchange (SGX) has proposed to raise the proportion of shares available to retail investors in initial public offerings.

The proposals include the introduction of a prescribed minimum allotment of five per cent of the total invitation shares to the public subscription tranche.

In addition, it proposed a 'claw back' mechanism that would increase the number of shares allocated to the public subscription tranche when the total demand exceeds prescribed thresholds.

According to the announcement by SGX, the exchange is seeking comments on the new proposals and market participants can send in their feedback till October 29.