“In recent years the main form of capital raising [in this sector] has been venture capital, which has been a successful model to a point, but with the launch of this new exchange there is an additional source of funding,” said Mallesons partner Louis Chiam. “We have a number of clients in the clean technology area, and they will want to bring new investment opportunities to the market. SIM VSE is yet to be a proven option, but there is a good prospect that it will serve as a more focused way of connecting start-ups seeking new capital with investors, in a way that is clearly labelled.”
A stated aim of the new exchange is to attract listings from Asia and particularly China and for this reason Asia-based lawyers will be keeping a keen eye on the progress of the SIM VSE. "There is clearly a demand for such a platform," said Loo Choon Chiaw of Singapore-based firm Loo & Partners . "However, it is too early to assess the real impact of SIM VSE on the Asian market at this stage. The competition for clean-tech companies will be keen. One must remember that most of the Asian exchanges are all trying to attract burgeoning quality companies, including those in the environmental space."
Singapore has been active in the water and clean tech space and may prove to be another source of business for the SIM VSE. "SGX has been tapping the water and clean-tech space," said Loo Choon Chiaw. "Thus far, there has been some 28 companies from the sector listed on the bourse. The Singapore government has committed to building a strong ecosystem for the industry with close to S$700m being channeled for R&D centres, clean-technology parks and other initiatives. With such a push from the government, it is clear that clean technology shall move from niche to mainstream, and as a result of which the demand for capital shall become significant as companies make vast investments in infrastructure to expand their businesses. SIM VSE is certainly one of the possible platforms which quality clean-tech companies in Singapore may consider as a listing venue."
The first listing on SIM VSE will be Indigo Technologies, an Australia-based company specialising in providing sustainable air emissions solutions for clean coal combustion and industrial processes.