Singapore’s government is launching a new grant to help businesses pay for an IPO and hire equity research analysts

The GEMS grant will help pay for a portion of the Initial Public Offering (IPO) costs for businesses looking to be listed on the Singapore Exchange.
The Straits Times
  • Next month, MAS will launch a grant, named GEMs, worth S$75 million.

  • The funds will be used to help businesses defray the costs of an IPO listing on the Singapore Exchange.

  • They will also be used to pay a portion of salaries for any equity research analysts hired by small and mid-cap companies locally, and fund other equity research initiatives.

  • The MAS hopes funding more equity research will improve investors’ knowledge about equity.

The Government is pouring S$75 million into a grant that will help pay for a portion of the Initial Public Offering (IPO) costs for businesses looking to be listed on the Singapore Exchange, the Monetary Authority of Singapore (MAS) announced on Monday (Jan 14).

The grant, called the Grant for Equity Market Singapore (GEMS), will also help businesses hire equity research analysts by co-paying for their salaries, MAS said in a statement.

GEMS will be launched next month.

MAS assistant managing director Ng Yao Loong said that the grant would help “strengthen Singapore’s position as the go-to venue in Asia for enterprises seeking growth financing”, and that results from previous private market initiatives and bond grant schemes had been “encouraging”.

“Singapore has been working to enhance our private and public markets so that domestic and international growth enterprises are able to access different types of capital best suited to their needs,” he added.

Businesses in the new technology sector stand to benefit the most from GEMS, with MAS co-funding 70 per cent of their IPO expenses – or up to a maximum of S$1 million. Companies in fintech, consumer digital technologies, on-demand services and gaming, with a minimum market value of S$300 million, are eligible for this grant amount.

Funding for businesses from high growth sectors with a market value of S$300 million – like advanced manufacturing, logistics, healthcare, and urban solutions and infrastructure – can get funding for around 20 per cent of IPO expenses, with a maximum cap of S$500,000.

Last, businesses from all other sectors will receive a co-payment of 20 per cent of IPO expenses, or up to S$200,000 – but do not need to have a minimum market value, MAS said.

Apart from IPO costs, the grant will also fund local equity research by helping mid and small-cap enterprises afford to hire local equity research analysts.

MAS will co-pay 70 per cent of the salaries for fresh graduates hired as equity research analysts, and 50 per cent of the salaries for re-employed, experienced equity research analysts.

In addition, a portion of the S$75 million GEMS fund will go towards supporting crowd-sourced ideas that develop equity research, such as the publication of industry or sector primers, or “innovative ways” to distribute research and enterprise information to investors.

The MAS said it hopes this enhanced research coverage will also improve investor knowledge about equity, and in turn facilitate price discovery and liquidity.

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