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Why Did Trendlines Group Ltd Choose To List In Singapore?

When a foreign company decides to list here in Singapore, some of you may go, “Why?”

After a round of scandals involving S-Chips in Singapore’s stock market (S-Chips are Singapore-listed companies that are based in China), it can be easy to be sceptical about foreign companies listing here.

But, there can still be good reasons for foreign companies wanting to list in Singapore. For instance, Indonesia-based companies such as Golden Agri-Resources Ltd (SGX: E5H) and Wilmar International Limited (SGX: F34) need access to a more international investor base to help fund their operations. Given the less mature stock market in Indonesia, a listing in Singapore makes sense.

In any case, whenever I get to meet management teams from companies that are based outside of the country of their listing, one question I like to ask is: “Why did you choose to list in this country?”

I recently got the chance to ask this question to the co-Chairman and co-CEO of Trendlines Group Ltd (SGX: 42T), Stephen “Steve” Rhodes.

Trendlines is a relatively new listed company in Singapore’s stock market, having floated its shares only in November 2015. The company is a venture capital investor based in Israel and it invests mainly in companies that deal with medical devices and agriculture technologies. It is also only the second Israel-based company to be listed in Singapore.

According to Steve, Trendlines had explored a listing in other markets prior to doing so in Singapore.

The natural listing destination for most Israeli companies is the Nasdaq exchange in the US. In fact, Nasdaq has a pact with the Tel Aviv exchange to help raise funds for Israel-based companies.

However, Trendlines understood that it was still a rather small company and it would not be easily recognizable if it was listed in large exchanges such as the Nasdaq, or even the Hong Kong Stock Exchange.

Before deciding to list in Singapore, Trendlines’ management actually considered a listing on the Toronto Stock Exchange in Canada. However, due to a weak response from investors in Canada, the company decided to pull out from that plan.

And thus Trendlines came to Singapore. The company saw many similarities between Singapore and Israel. Singapore also gave it access and exposure to the Asian market place. This was how Trendlines finally decided on a listing in Singapore last year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn't own shares in any companies mentioned.