Are you looking for more information on the Initial Public Offering Process Singapore? This article will help highlight in simple terms the listing process in Singapore.
As the Global Economy continues to grow in 2013 and the prices of Singapore shares continues to climb, many global macro funds would start to invest their monies into Singapore equity funds which in turn will invest in companies that are listed on the Singapore Stock Exchange (SGX-ST).
It is during this period that many companies from Singapore and China will start considering listing their companies on the Singapore Exchange.
What are the several reasons that a businessman may have for listing his company in Singapore?
- Whilst there is a higher valuation based on PE ratios in China and Hong Kong but in China the queue is 800 to 900 companies waiting for approval to list which makes listing in China a feat in itself. While in Hong Kong only large companies are able to receive approval quickly. The smaller ones join the queue.
- A public listed company means that the businessman can discharge his personal guarantees for his company. This is quite an important thing for a serial entrepreneur so he can use his own good personal credit for other ventures.
- A businessman can make money from his stock price. No we are not talking about insider trading. So a businessman can buy shares in the market when there is no inside news and then release good news (assuming its true) and then sell his shares at a profit.
So what is the initial public offering process in Singapore?
- First a team is assembled to examine if a company can be listed in Singapore.
- The audit of the company’s last three years of financials are carried out and restructuring of a company (if necessary) is carried out.
- The due diligence process starts.
- The relevant documentation is drafted and submitted to the Singapore Exchange for comments and approval.
- The listing is given the green light and the prospectus is listed on the website of the Monetary Authority of Singapore for main board companies or on Catalodge for Catalist companies for a period of time.
- After the expiry of the Red Herring Period, the Company is listed on the Singapore Exchange.
This process is typically supposed to take anything from 6 months to 9 months (assuming no complications arise) but may take longer. In the interim, private equity investors will invest monies in these companies to fund the IPO expenses by way of a pre-IPO investment usually in the form of a convertible loan to the company.
Do contact us if you are interested in a Singapore Listing.