New set of guidelines set out expectations and recommendations on due diligence work that issue managers and full sponsors carry out during the initial public offer / reverse takeover and listing process. They were developed in close collaboration with the Singapore Exchange Regulation. Key updates include: An increased focus on the assessment of the adequacy and effectiveness of the issuer’s internal controls to meet its business needs and challenges as a listed company; the assessment of the sustainability and viability of the issuer’s business; and targeted guidelines for due diligence on issuers operating in specialized, restricted or niche industries, and/or in higher-risk jurisdictions.
The revised guidelines are necessary to ensure they are relevant to the constantly changing economic climate. With the increase in issuers from more nascent sectors such as technology that are seeking equity capital, it becomes especially important for issue managers, full sponsors and their professionals to adapt due diligence practices that address the particular needs of the new market environment.