Dual listings between ASEAN Markets are a relatively new concept, which allows locally listed companies to list on another exchange in the region, often under a Depositary Receipt (DR) scheme.
These instruments can be orchestrated by the companies themselves, either as a secondary listing, as depositary receipts, or the listings can be sponsored by a broker or investment bank. Most dual listings are secondary listings rather than primary listings but will still be subject to regulations in the secondary market.
What are Depositary Receipts?
Depositary Receipts represent shares in a foreign company traded on a local bourse and allow investors to buy the shares of a foreign entity using local currency in that market. These can be instruments issued by brokers and listed under a separate code. Sponsored DRs are issued with the cooperation of the foreign company, while unsponsored DRs are issued by a bank without the company’s involvement. Unsponsored DRs are generally less liquid and may involve higher risks, trading OTC (over the counter).
The Rise of American Depositary Receipts (ADRs) for ASEAN Companies
Historically, it has been the case that larger market capitalisation companies listed on an ASEAN bourse have sought to list shares on overseas markets, as American Depositary Receipts (ADR) or Global Depositary Receipts (GDR). These are generally denominated in US$, the intention being to make it easier for overseas investors to invest in those companies, without having to trade in the local stock market and in their own trading hours.
Historically, this was mainly the preserve of large-cap companies from the Philippines, Indonesia, and Thailand.
There are now 24 Philippine-listed companies with ADR listings, including PLDT, Ayala Corporation, and Aboitiz Equity Ventures. 39 companies from Indonesia have US ADR listings, including heavyweights Telkom Indonesia, Bank Rakyat, Bank Mandiri, and Astra International. Thailand has a total of 35 locally listed companies, with dual listings in the US, including Bangkok Bank, Siam Cement, Bangkok Dusit Medical, and CPALL. Malaysia has a total of 27 listed ADRs in the US, encompassing large caps such as MayBank, Genting and Sime Darby. This includes both sponsored and unsponsored ADRs.
The idea behind having a dual listing in the US is to access the deep pools of capital in the US market and broaden the investor base. The result has not been encouraging, with thin traded liquidity on the shares, and institutional investors tending to invest directly in the companies in their home markets rather than in the US-listed ADR. There are also costs to maintaining a NYSE listing, as well as extensive regulatory and reporting requirements.
More recent overseas listings of Southeast Asian domiciled companies have also diverted investor activity away from local exchanges, especially Singapore, even though the performance since listing has, for the most part, been disappointing.
Grab Holdings and Sea Ltd are some examples of Singapore-based companies that have sought to access US capital in the technology space through US-listings rather than listing in their home market. Property Guru was another later US listing, which delisted in December 2024.
It would make sense for companies that are headquartered in Singapore to have a dual listing in their home market, making it easier for retail investors to invest in those companies. This could potentially attract foreign investment and bring liquidity to the local bourse, as well as attracting other tech start-ups to list in the country of domicile.
Paving the Way for ASEAN Dual Listings
In 2022, the SGX and NYSE signed a collaboration agreement to facilitate dual listing on both exchanges to create a more interconnected ecosystem on both markets. The aim of this agreement was to expand the investor base and allow for better access to capital.
The ASEAN-6 also plan to collaborate on the issuance of depositary receipts (DRs) that can be traded across the six stock markets. (Indonesia, Malaysia, Singapore, Philippines, Thailand, and Vietnam).
The six ASEAN Exchanges signed an MOU in December 2024 to develop market and regulatory frameworks for the DRs, as well as foster information sharing and engagement with market regulators and participants.
The theory behind the initiative is that DRs can provide additional investment opportunities for domestic investors in the region, especially retail investors, and raise the profile of ASEAN as an attractive investment destination, creating larger pools of liquidity.
In November 2023, the SGX and Stock Exchange of Thailand launched a linkage that allows DRs representing shares in companies listed on one exchange to be issued for trading on the other exchange and vice versa. This marked the first exchange-level DR cooperation in ASEAN to enable an integrated and accessible regional exchange market.
Currently, there are a total of 16 DRs listed on both the Thai and Singaporean stock exchanges under the DR project.
Promoting Dual Listings Across ASEAN
A key component of any exchange is its regulatory regime, which must protect against fraud and share price manipulation and provide oversight on trading liquidity. Regulators work closely with exchanges in the region to provide orderly compliance oversight for markets, regulating listed companies, market participants, including brokers, and institutional and retail investors.
A strong regulatory backdrop is essential for market reputation and credibility, but exchanges should also provide strategies to encourage listings and foster a conducive environment for M&As and secondary issues.
Singapore
The first of the Singapore Depositary Receipts (SDRs) launched under the SET-SGX DR linkage was offered in May 2023 when Singapore’s Phillip Securities issued depositary receipts representing shares of Airports of Thailand (AOT TB), CP ALL PCL (CPALL TB), and PTT E&P (PTTEP TB). There are now a total of seven Thai SDRs.
Exchanges in both countries have been encouraging foreign listings under the Thailand-Singapore Depositary Receipts (DR) linkage under an unsponsored model, and have already allowed several large Thai companies, along with several Chinese companies listed in Hong Kong, now totalling eight, to trade.
The benefits of investing in Thai companies through SDRs include the fact that the stocks are traded in Singapore dollars, meaning there is no need for Singapore retail investors to exchange currency to buy those stocks and can trade through their local brokers giving Singapore-based investors the ability to invest in foreign markets without incurring additional fees.
One way to jump-start more dual listings would be to persuade large tech companies to list in Singapore, especially companies that are already headquartered in the City State.
Large-cap tech sector listings would help attract new liquidity to the SGX and enhance its reputation as a listing destination, not only for dual listings but also for IPOs of regional tech companies seeking a more suitable location for a primary listing. Greater trading liquidity would also make the exchange a more attractive hub for investors looking to gain exposure to Southeast Asia.
For the other exchanges participating in dual listings, it would encourage more retail participation in local markets and encourage more retail participation.
The SGX also continues to look for foreign companies to list as SDRs in Singapore, especially companies that have a regional presence.
Core sectors include Financial, Consumer, Healthcare, Technology and Commodities & Resources. SGX is also home to some of the world’s largest Maritime & Offshore services related companies.
The SGX also has eight Hong Kong-listed companies with SDRs in Singapore, including Tencent, BYD, and Alibaba.
Thailand
Thailand has been the most aggressive in rolling out its DR scheme, with DRs issued on several large Chinese-listed companies, including Tencent, Alibaba, and Baidu.
The Stock Exchange of Thailand also recently accepted the registration of three new foreign Thai Depositary Receipts (TDRs) of stocks listed on the SGX. This is on top of the six DRs already listed in Thailand.
The three most recently added TDRs include ‘DBS19’ referencing DBS, ‘THAIBEV19’ referencing Thai Beverage and ‘UOB19’ referencing UOB with all being issued by Yuanta Securities (Thailand) Co., Ltd. and began trading in August 2024.
Thailand has also introduced tax exemptions for issuers and holders of DRs to encourage DR transactions and promote investment in foreign securities. Thai investors have the opportunity to broaden their investments into foreign stocks but can do so in Thai Baht.
Philippines
The Philippines has several US listings through ADRs but only a few dual listings within ASEAN, with international brandy and whisky company Emperador Inc (EMI SP) and (EMI PM) being the most recent Philippines-listed company to launch a dual listing in Singapore in July 2022. The dual listing aimed to attract investors who may not invest directly in the Philippines.
Prior to this, Del Monte Pacific Limited (DELM PM) was dual-listed in Singapore under Del Monte Pacific (DELM SP) going back to 2013.
There was also a plan for GCash, a leading digital payments company backed by Globe Telecom (GLO PM) through its subsidiary Mynt, to pursue a dual listing on the Philippine Stock Exchange (PSE PM) and in the US, but this was later pulled. The company now plans to list solely in the Philippines, in what is expected to be the country’s largest IPO.
Indonesia
The IDX and Hong Kong Exchange & Clearing have signed an MOU to explore strategic collaboration, which may include dual listings. The aim is to provide access to a deeper pool of capital for Indonesian companies in Hong Kong, where a dual or cross-border listing would take place through a depositary receipt.
Listing an Indonesia company in Hong Kong would be more suitable for certain industries and most likely for companies that have some China exposure.
Malaysia
Malaysia has several dual and secondary listings, mainly in Singapore (SGX) but also in Australia (ASX) and Hong Kong (HKSE).
Two SGX-listed companies have expressed an interest in listing in Malaysia. SGX-listed Grand Venture Technology Ltd announced last September that it was eyeing a secondary listing in Malaysia. SGX-listed UMS Holdings Ltd has also said it intends to seek a secondary listing on Bursa’s Main Market. In an exchange filing, the semiconductor group said this could help widen its investor reach as well as base, on top of potentially improving the liquidity of its shares through separate trading platforms. These dual listings have been approved and are due to take place in March.
Vietnam
Vietnam has expressed an interest in dual listings for its listed companies on overseas exchanges. In 2008, Vinamilk was the first Vietnamese enterprise to receive approvals from both Vietnamese and Singapore authorities for listing on the main trading floor of the SGX, but the process of complying with two distinct sets of securities regulations posed many challenges. Eventually, in 2011, Vinamilk decided not to proceed with the listing due to the market conditions at the time.
Though an overseas listing can provide enormous benefits, the process of overseas listing for a Vietnamese company can be complicated and lengthy, often taking a few years to conclude.
Overseas listings for Vietnamese entities have been slow, with only EV manufacturer Vinfast successfully listing in the US after creating an overseas entity. Leading E-commerce player Tiki is also prepared for a US listing, having restored 90.5% of its shares into a Singapore entity. Tech company VNG Corp is also preparing for an overseas listing, having restructured a portion of its shares into a Cayman Islands company.
Several major Vietnamese listed companies have expressed an interest or intent to explore plans for dual listings or Depositary Receipt programs overseas, with a focus on Singapore, Hong Kong, and Thailand as listing destinations.
In early 2024, Yuanta Securities Vietnam announced plans to issue depositary Receipts (DRs) for Vietnamese blue-chip companies. This scheme has already seen the listing of four DRs, including FPTVN19 (FPT Corporation) and VNM19 (Vinamilk) in 2024, followed by MWG19 (Mobile World) and VCB19 (Vietcombank) in 2025. The aim of these listings was to enhance capital mobility and expand regional investor access.
The Vietnamese government is encouraging capital market integration, with the 2020 amended securities law supporting international listing mechanisms such as Depositary Receipts in overseas markets. Pilot programs have been supported by the State Securities Commission, the Ministry of Finance and the Vietnam Exchange.
The progression towards overseas listings is likely to be a slow one, given the track record so far and the complications with the domicile of the companies concerned. Vietnam continues to actively pursue an upgrade to Emerging Market status from Frontier, which may help to speed the process. The underlying strategic move is to access a wider investor base, access foreign currency capital and achieve higher corporate governance standards and visibility on international platforms.
Singapore and Thailand are leading the pack
The momentum behind dual listings continues to pick up, with Singapore and Thailand leading the way, with Malaysia playing catch-up. The dual listing of Chinese Hong Kong-listed stocks has been another feature, given the strength of retail interest in those companies. The new listed DRs in ASEAN markets tend to be the preserve of retail investors rather than institutions, which are better equipped to go directly to local markets.
This article was written by Smartkarma, in collaboration with ASEAN Exchanges.
