Catalist - Singapore

From Financial Literacy Wiki

Catalist, formerly known as SESDAQ is a sponsor-supervised exchange. What it means is that companies do not face any limitation on what market value they should be to list on Catalist. The only requirement is that the company has to be brought to list by a approved sponsor.

To remain listed after IPO, companies must engage a Sponsor at all times. Sponsors are to advise listed companies on rule compliance, review their public documents and whistleblow to SGX when there is an affirmed or suspected rule breach.

Having such an arrangement benefits all stakeholders. Sponsors would be able to build a long term relationship with the company, building a strong branding by bringing quality companies and also ensuring the company that they sponsor do not breach regulations.

Companies would have faster access to public funds and having a sponsor as an adviser.

Investors can invest in fast growth companies and have some safeguards with the sponsor looking after their sponsored companies.