Public Listing / IPO

CAPITAL has a well-established process and expert networks for successfully listing and raising capital for SMEs.

The key is to formulate an attractive investment proposition that will be attractive to investors and then to properly document the offer so as to encourage investors to subscribe to the issue.

Key elements of a successful listing:

Getting a valuation that best serves the business owners’ goals and their investors.

Raising the required amount of funds.

Gaining broker support for the listing and the ongoing market.

A rising share price after listing.

It is important to get the investment strategy right so that there is interest in the ongoing growth of the company from investors and the broking community.

Listing Options

Reverse Take Over (RTO) / Merger

CAPITAL identifies shell companies listed on Malaysia, Singapore, Australia, UK and US stock exchange; work with its capital market partners to advise and engineers back-door listing of client’s assets and/or targeted assets. After acquisition of listed shell company, we arrange growth capital to be placed into the client’s listed company.

Initial Public Offerings (IPO)

CAPITAL works closely with client-company to identify a suitable market to list, for example Bursa Malaysia Ace Market, Singapore SGX Catalist, Hong Kong GEM, Australia NSX / ASX, London AIMUS OTC Market and Nasdaq – best for the client’s industry and file for initial public offerings to general market or via placement. Upon completion, CAPITAL will also make a placement into listco to fund projects for expansion.

General Requirements

Generally, a company should have the following attributes for listing on stock exchange:

Identifiable Core Business. A company that has majority ownership and management control of an identifiable core business, which is the principle source of operating revenue or after-tax profit. A core business premised on owning investments in other listed corporations or businesses will not qualify.

Good Management. A company that is effectively managed by capable people in terms of experience and qualification with management continuity well in place.

Strong Business Prospects. A company that is involved in a growth industry, possessing sizeable brand equity and market share, making inroads against its competitors and having a core business that is well positioned to reap returns.

Healthy Financial Position. A company with positive cash flow from operating activities as well as sufficient working capital for at least 12 months.

Good Corporate Governance. A company with strong corporate governance policies and practices.

Minimum Public Spread. A company must be a Public Limited and have above certain number of shareholders

Benefits of Listing

Access to Capital – by listing your company, you will have access to global capital to meet your company’s expansion plans and goals.

Facilitate Growth – With greater access to capital, your company has the potential to acquire other companies or businesses to grow. You will also have the capability to offer shares as currency to facilitate your acquisition and growth strategies.

Enhance Credibility, Profile and Visibility – As a listed entity, your company will generally be perceived more positively in terms of its financial and business strength when compared with being a privately held one.

Incentive to Employees – A listing can involve shares being allocated to employees to align the interest of your employees with the goals of your company.

Increased Valuation – Typically publicly traded companies enjoy substantially higher valuations than private companies. The creation of a public market creates liquidity in the shares of your company. This can help broaden the shareholder base while enabling existing investors such as venture capitalist or other owners to realise the value of their investments.

More information about IPO / Public Listing

Catalyst to IPO from William Tan
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