By Anshuman Daga

SINGAPORE (Reuters) – Singapore moved to attract high-growth local and overseas companies to raise capital on Singapore Exchange (OTC:) and broaden the city-state’s appeal as a financing hub on Friday with a package of funding and incentivising measures.

SGX, which has a small number of investors from a population of 5.7million people, is not able to secure large-scale regional initial public offerings. Although it has seen many delistings over the years, it is still a major global platform for raising capital for real estate investment trusts.

The ministry of commerce and industry in Singapore announced that Temasek, the state investor and government of Singapore will create a coinvestment fund for late-stage private financing and IPOs high-growth companies to support their listing in Singapore.

The moves come after SGX earlier this month unveiled new rules https://www.reuters.com/article/sgx-regulation-spacs/update-1-singapore-exchange-targets-spac-hopefuls-with-relaxed-rules-idUSL1N2Q40ON allowing listings of special purpose acquisition companies, marking the first Asian bourse to do since the now-waning U.S. SPAC frenzy began last year.

65 Equity Partners will manage the fund on a commercial basis. The new Temasek-owned investment platform has already raised the first tranche of S$1.5 million ($1.1 billion).

EDBI is the Singapore Economic Development Board’s investment arm. It will establish a new Growth IPO Fund’ to invest in late-stage companies. Usually, this fund typically holds two funding rounds or more away from a public offering.

Currently, EDBI invests in early stage companies.

EDBI is partnering with companies in Singapore to help them grow and become more successful. The fund will be up to S$500 millions.

Friday’s proposal was jointly made public by the trade and industrial ministry, EDBI (Temasek), the Monetary Authority of Singapore, and SGX.

It announced that the Monetary Authority of Singapore will boost its financial support grants for equity listings within Singapore’s financial hub.

To increase coverage of locally-listed companies, the regulator will raise co-funding for listing expenses and grant more equity research analysts.

($1 = 1.3454 Singapore dollars)