[SINGAPORE] Singapore depository receipts (SDRs) of three US-listed companies – Grab, Sea and SpaceX – will begin trading on the Singapore Exchange (SGX) when the market opens on Wednesday (Jul 22).
The new additions mark the first US-listed SDRs trading on SGX. Including them, the bourse now offers 38 SDRs across four markets – namely Thailand, Hong Kong, Indonesia and the United States.
SDRs are financial instruments that allow investors to hold shares of foreign companies listed on stock exchanges outside of Singapore, without directly dealing with the complexities of buying shares on overseas bourses.
In a statement on Tuesday, SGX said the move gives retail investors a simpler way to gain exposure in Singapore dollars to some of the world’s leading companies, spanning the digital economy, e-commerce and payments, as well as frontier sectors such as artificial intelligence and space exploration.
This means that investors can trade and manage shares in the three companies in Singdollars during local market hours, eliminating the need for foreign currency conversion.
“By minimising traditional pain points such as foreign exchange friction and overseas market complexities, investors can conveniently build a globally diversified portfolio in Singapore dollars within a familiar trading environment,” noted Bernice Tan, SGX Group’s vice-president of securities market and depository.
Luke Lim, PhillipCapital’s managing director, said that the announcement is a significant step in helping investors diversify their portfolios.
“The new SDRs offer a unique mix of household names that are highly relevant to our regional economy, alongside pioneers in high-growth sectors.”
He added: “This balance of daily familiarity and global relevance makes international investing much more approachable and convenient for Singapore investors.”
SGX said that the SDR’s latest expansion comes as investor activity in the product “continues to build strong momentum”.
For instance, it highlighted that average daily turnover has more than trebled year on year, driven by a record high in retail participation.
Total assets under management have also increased 153 per cent year on year to cross S$280 million, with retail investors holding more than 80 per cent of total holdings.
