The Star online reports read:SC tightens rules for Mesdaq listing candidates. The rumbling among investors at the underperformance of Mesdaq listings is not new, nor has it increased in decibels. Merchant bankers point to the recent spate of rejections by listing candidates and claim this is an active sign from Mesdaq that the SC is beginning to focus on quality rather than quantity.
While prudence remains pertinent, it is important to consider the role Mesdaq could have played and the mess it now finds itself in.
I believe the idea for Mesdaq was to be an avenue for high-er risk technology companies to seek funding from financial markets. The reason for the less stringent requirements was the fact that new technology is, well... new! It was a solution whereby people could have a slice of the action - and RISK, with a very good returns is things worked out.
However, as with most good ideas, it became embroiled in self interests. Listen, if there is anyone to blame, start with the merchant bankers! Let's be realistic, there was never a situation where SC was expected to vet each proposal. It was the merchant bankers afterall who presented each case, and they afterall who first took their share of the proceeds when a listing was successful.
Now that new rules are put in place, how much in truth is Mesdaq different from the 2nd Board? So where does this leave genuine technology companies?
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